BlackRock Warns SEC’s Plans on ESG Disclosures Will Backfire – ESG investing looks to be redefined soon.

Gary Gensler - Al- Drago -Bloomberg

ENB Publishers Note: In the first 6 months of 2022 BlackRock lost an estimated $1.7 trillion dollars. This loss has triggered a relook at energy investing. Looking at responsibly acquired natural gas, and companies like OXY with clear CCUS and ESG strategies are going to be in demand for investors looking to make money in this tight market. 

  • ‘ESG Integration’ label poses greenwashing risks, firm says
  • Money manager, trade groups want SEC to nix it from May plan

BlackRock Inc. is warning US regulators that new rules to fight greenwashing by fund managers could sow more confusion and make investors think their holdings are more socially conscious than they really are.

The firm is pushing back on a key detail in a proposal to require managers to say more about how environmental, social and governance issues fit into strategies for funds that also consider myriad other factors. The result, BlackRock said in a letter this week to the US Securities and Exchange Commission, could mislead investors about how much ESG really matters when managers pick stocks and bonds.

Greenwashing is a term critics of ESG investing coined to describe exaggerated claims by the industry about their efforts to choose companies that support clean energy. What’s more, mutual fund and pension managers including BlackRock have been criticized by conservative groups for putting too much emphasis on ESG because it penalizes certain sectors, such as oil and gas.

SEC Chair Gary Gensler and the agency’s Democratic commissioners proposed new regulations for ESG funds in May and could finalize them in coming months. The SEC declined to comment on the letter.

Although BlackRock supports the SEC’s overall push to clarify asset managers’ strategies, the firm said the plan to require new disclosures for funds that just consider ESG criteria among many other factors could muddle the situation. Applying the disclosure requirements to those “Integration” funds could mislead investors by overstating the significance of ESG considerations, BlackRock said.

Let us know what you think on the Energy Crisis and Climate Change.

About Stu Turley 2062 Articles
Stuart Turley is President and CEO of Sandstone Group, a top energy data, and finance consultancy working with companies all throughout the energy value chain. Sandstone helps both small and large-cap energy companies to develop customized applications and manage data workflows/integration throughout the entire business. With experience in implementing enterprise networks, supercomputers, and cellular tower solutions, Sandstone has become a trusted source and advisor in this space. Stuart has led the “Total Corporate Digital Integration” platform at Sandstone and works with Sandstone clients to help integrate all aspects of modern digital business. He is also the Executive Publisher of www.energynewsbeat.com, the best source for 24/7 energy news coverage and is the Co-Host of the energy news video and Podcast Energy News Beat. Stuart is on Board Member of ASN Productions, DI Communities Stuart is guided by over 30 years of business management experience, having successfully built and help sell multiple small and medium businesses while consulting for numerous Fortune 500 companies. He holds a B.A in Business Administration from Oklahoma State and an MBA from Oklahoma City University.