The news: BlackRock has shaken up its leadership with a new CFO and rebranded its sustainable investing division, partly in response to recent criticism linked to environmental, social, and governance (ESG) investing, according to the Financial Times.
Why now? BlackRock has been embroiled in a tussle with Republican-led states, which have been penalizing financial institutions (FIs) for supporting ESG policies rather than the fossil fuel industry. But it’s been simultaneously criticized for investing billions into oil, gas, and coal companies while publicly touting its environmental efforts.
What could it achieve?
ESG still a priority: Despite pushback from some quarters, a massive ESG assets under management (AUM) growth opportunity remains for firms that are proactive.
Read on: Check out our report on The Rise of ESG Investing for more on how ESG products can drive growth for asset managers.
This article originally appeared in Insider Intelligence's Banking Innovation Briefing—a daily recap of top stories reshaping the banking industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.
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