BlackRock's Exit: Timing or Trend?

BlackRock, the world's largest asset manager, has decided to exit the "Net Zero Asset Managers Initiative. " This group, backed by the UN, aims to combat climate change. The decision comes as the city of Los Angeles faces devastating wildfires. Are woke policies to blame? Let's rewind. A few years ago, BlackRock joined this initiative, along with others like JPMorgan and State Street. The idea was to invest in a way that protects the environment. But there's a catch. These companies aren't charities; they're publicly traded and need to make money. Enter ESG (Environmental, Social, and Governance) investing. It's like telling businesses what to do with their investments. For instance, oil companies were asked to drill less and build more windmills. Sounds good, right? But there's a cost.

Big fees and political cover from the UN made ESG a goldmine. Left-leaning politicians pushed for it, and investors followed. But was it working? Some scientists question if curtailing carbon emissions was truly effective, or if it caused more harm. When gas prices hit $5 in mid-2021, working-class people felt the squeeze. They had enough, and politicians took notice. Republicans, led by Donald Trump, investigated if the UN-endorsed coalition violated antitrust laws. In California, the woke mentality is clear. Strict environmental laws protect small fish but don't stop wildfires. Plus, the LA Fire Department's DEI hiring spree favors women over men, even for physically intense jobs. CEOs like Larry Fink and Jamie Dimon are distancing themselves from ESG. Even Mark Zuckerberg is rethinking corporate DEI policies. Maybe it's not just about going woke and broke. It's about the real-world impact on people and cities.

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