BlackRock Leaves UN Net Zero Amidst Legal Pressure

BlackRock, the world's largest asset manager, has withdrawn from the UN-backed Net Zero Asset Managers initiative amid Republican pressure and legal challenges. The initiative aimed to achieve net-zero greenhouse gas emissions by 2050. BlackRock cited confusion regarding its practices and legal inquiries from public officials as reasons for its departure, though it stated this exit won't affect how it manages client portfolios. The move has drawn criticism from climate advocates, including the UN, which emphasized the critical role of asset managers in combating climate change. This decision is part of a broader trend where major financial firms are retreating from climate commitments under political pressure, particularly from states with significant energy interests. Despite the withdrawal, BlackRock reaffirms its commitment to sustainable investing and mitigating climate-related risks in its portfolios.