Major Asset Manager BlackRock Becomes Latest Financial Firm to End Membership in Global Net-Zero Alliance

Sierra Club calls on BlackRock to fulfill fiduciary duty to investors by addressing climate change

January 9, 2025

NEW YORK - Major asset manager BlackRock today announcedit is leaving the Net Zero Asset Managers (NZAM) initiative, writing in a letter to its clients that membership "caused confusion regarding BlackRock's practices and subjected us to legal inquiries from various public officials," according to a copy of the letter obtained by the Financial Times.

BlackRock joins several other financial firms that have ended their membership in net-zero climate alliances in recent weeks, including departures by major US banks JPMorgan Chase, Morgan Stanley, Citi, Bank of America, Wells Fargo, and Goldman Sachsfrom the Net Zero Banking Alliance (NZBA).

In response to the news, Ben Cushing, campaign director for the Sierra Club's Fossil-Free Finance campaign, issued the following statement:

"Regardless of the political pressures Larry Fink is responding to, the fact remains that climate change poses one of the greatest risks to our global economy and the long-term investments BlackRock's clients rely on. Membership in voluntary alliances sets an important baseline, but to truly fulfill its fiduciary duty to long-term investors, BlackRock must support real-world decarbonization through stronger shareholder voting and by directing capital toward industries that mitigate systemic climate risks. If BlackRock won't do that, its clients should find a different asset manager that will."

About the Sierra Club

The Sierra Club is America's largest and most influential grassroots environmental organization, with millions of members and supporters. In addition to protecting every person's right to get outdoors and access the healing power of nature, the Sierra Club works to promote clean energy, safeguard the health of our communities, protect wildlife, and preserve our remaining wild places through grassroots activism, public education, lobbying, and legal action. For more information, visit www.sierraclub.org.

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