ESG FALLOUT: BlackRock CEO faces call to step down over hypocrisy claims
Amid its broad push for ESG, BlackRock's stance against investing in fossil fuels has been a particular point of controversy for its detractors. Folwell noted in his letter that in 2020, Fink "used BlackRock's clients' votes against two management-supported board members of ExxonMobil because of ‘insignificant progress’ towards green energy. Yet, ExxonMobil stock rose 60% in the 12 months since the board member election because of an increase in demand for oil.
Over the last year, BlackRock has rolled out and later broadened a proxy voting program that allows certain groups of the firm's clients to weigh in on investment decisions. In his letter, Folwell informed BlackRock's board that the NCRS will begin voting the shares it has under the management of BlackRock in an effort to counteract the investment giant's ESG push, but said "the existence of the proxy voting program does not mitigate the need for a new direction at BlackRock.
Folwell's letter to the BlackRock board concluded that Fink must leave the firm for it to refocus on its fiduciary duty to investors: "Given his dogged pursuit of these political objectives over a number of years, I'm skeptical that he would or could lead the necessary course correction.
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