Trump Fallout? BlackRock Exits Climate Alliance, Cites Regulatory Pressure And Client Confusion

BlackRock Inc. BLK, the world’s largest asset manager with $11.5 trillion in assets, has withdrawn from the Net Zero Asset Managers initiative, a global group committed to achieving net zero greenhouse gas emissions by 2050 or sooner, following President-elect Donald Trump‘s victory and increasing regulatory pressure.

In a letter to institutional clients, Vice-Chair Philipp Hildebrand cited regulatory inquiries and client confusion as key factors driving the decision, the Financial Times reported on Thursday.

The move follows similar exits by major U.S. banks, including JPMorgan Chase & Co. JPM and Goldman Sachs Group Inc. GS, from climate alliances.

BlackRock’s environmental proxy voting support has declined significantly, dropping from 47% in 2021 to 4% last year, reflecting a broader shift in its climate stance. The firm maintains this decision won’t alter its approach to climate risk assessment in portfolio management, even as it faces ongoing litigation from 11 Republican-led states regarding its environmental policies.

Meanwhile, the Trump administration aims to boost energy production by 3 million barrels of oil equivalent per day, introduce a potential 25% tariff on Canadian oil and gas imports, and expedite the approval process for liquefied natural gas (LNG) exports.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.