The Sierra Club Foundation has announced it will withdraw $10.5 million from BlackRock, citing the asset management giant’s inadequate efforts to hold portfolio companies accountable on climate issues.
Though the sum represents a small portion of BlackRock’s $11.6 trillion in assets under management—including over $1 trillion in sustainable and energy transition investments—the move signals growing dissatisfaction among climate-conscious investors.
Dan Chu, Executive Director of the Sierra Club Foundation, said the decision followed BlackRock’s declining support for shareholder resolutions aimed at curbing emissions and its withdrawal from the Net Zero Asset Managers initiative in January. “They never crossed the bridge where they would say they had an investment responsibility to fundamentally address the climate crisis,” Chu stated.
BlackRock responded by noting that some shareholder proposals have become too prescriptive and that its climate-related industry affiliations had led to “confusion” and potential legal challenges. “We support clients that have made net zero commitments for their organizations through our industry-leading sustainable and transition investment platform, research, and analytics,” a spokesperson said.
The divestment highlights BlackRock’s ongoing balancing act amid competing pressures. Earlier this month, Texas removed BlackRock from a list of firms accused of boycotting the energy industry, easing restrictions on public sector investments. However, the firm remains under scrutiny from other jurisdictions, including an upcoming review by New York City pension funds, which are demanding stronger emissions-reduction strategies.
The Sierra Club Foundation, which manages approximately $200 million in total, said it will redirect the funds to sustainable asset managers Nia Impact Capital and Xponance. The foundation had initially raised concerns with BlackRock in 2022.
