Larry Fink of BlackRock and His Global Crusade to Advance Identity Politics

Larry Fink of BlackRock and His Global Crusade to Advance Identity Politics. By Richard Reinsch.

Larry Fink has emerged as the point man for environmental, social, and corporate governance capitalism, broadly known as ESG. As chief executive officer of BlackRock, which holds a $10 trillion global portfolio, Fink leverages this immense power to compel companies that BlackRock invests in to comply with an aggressive climate change and diversity agenda in their operations.

Fink’s BlackRock is committed to a net-zero carbon strategy, and seeks global conformity across its clients on sustainability reporting measures, i.e., they must prove that their companies are seeking this goal.

BlackRock and Vanguard own several percent of every major company in the West, which gives them major influence on their Boards. They actively use that power, threatening to unseat Boards that don’t enact their agenda:

His annual letter to CEOs is closely read, and, it would seem, followed. In 2020, he stated that BlackRock “will be increasingly disposed to vote against management and board directors when companies are not making sufficient progress on sustainability-related disclosures and the business practices and plans underlying them.”

His 2021 letter noted the valiant protests for racial justice in 2020. And concluded that companies must meet the demands of protesters: “We ask that your disclosures on talent strategy fully reflect your long-term plans to improve diversity, equity, and inclusion, as appropriate by region.” …

Last year, BlackRock sided with “Engine No. 1,” an activist investment fund that replaced directors on ExxonMobil with three of its selections because of a belief that the corporation was not seriously confronting the challenges of climate change in its business strategy. The new directors then attempted to compel the company to divest oil and gas fields in Mozambique and Vietnam. The gaping need is to look for more environmentally sustainable investments in green energy, they argued. ..

Thus, identity politics replaces the liberal politics of deliberation, compromise, and building institutions with others and proclaims an illiberal politics that supplants our irredeemable inheritance.

Glenn Reynolds:

This is rather a lot of unaccountable power. We’d be hearing a lot about its dangers if it weren’t being deployed in service of a leftist agenda.

The big guns of class warfare.