Tuesday Reads: Climate Change Action and Impeachment Inquiry NewsPosted: October 29, 2019
Action on Climate Change
Before I get started on the latest news, I want to share some information about a climate action that is taking place today in several U.S. cities, including Boston. My sister-in-law is a leader in her local chapter of Mothers Out Front, an organization that fights climate change. The group has been working to call attention to Blackrock, a huge asset management corporation whose CEO Larry Fink has tried to position himself as pro-environment, while leading the company that contributes more than any other to the problem of global warming.
My brother made this video to publicize today’s actions.
The Guardian, May 21, 2019: World’s biggest investor accused of dragging feet on climate crisis.
[Blackrock CEO Larry] Fink, who was paid $24m (£18.8m) in 2018, began BlackRock as part of Blackstone, the world’s largest private equity group, and spun it out in 1995. Since then, New York-based BlackRock has risen to become an investing behemoth, controlling $6.5tn in assets – a value more than twice the annual output of the UK economy.
That staggering size has placed BlackRock at the heart of the global fossil fuel industry: it is the largest investor in coal worldwide, according to InfluenceMap, an environmental campaign group, and has by far the highest density of coal holdings of the world’s 10 largest investors. BlackRock effectively owns 2.1bn tonnes of thermal coal reserves, based on the size of its stakes in major miners.
BlackRock is counted among the top three shareholders in every oil “supermajor” bar France’s Total, and is among the top 10 shareholders in seven of the 10 biggest coal producers, according to Guardian analysis of data from financial information firm S&P.
Yet Fink, 66, who moves in US Democrat political circles, argues it is not his company’s duty to fight the climate emergency. In the real version of his annual letter to shareholders, published in January, Fink said that his overriding duty is to make customers money.
“Our firm is built to protect and grow the value of our clients’ assets,” Fink wrote. “We often get approached by special interest groups who advocate for BlackRock to vote with them on a cause. In many cases, I or other senior managers might agree with that same cause – or we might strongly disagree – but our personal views on environmental or social issues don’t matter here. Our decisions are driven solely by our fiduciary duty to our clients.”
Also from The Guardian, September 17, 2019: Wall Street investment giants voting against key climate resolutions.
Some of Wall Street’s largest asset management companies are failing to live up to commitments to use their voting power to fight the climate crisis, according to a new report.
The report, published on Tuesday by the Washington DC-based Majority Action and the Climate Majority Project, claims that BlackRock Inc, the world’s largest asset manager with more than $6tn under management, and Vanguard, with assets of $5.2tn, have voted overwhelmingly against the key climate resolutions at energy companies, including a resolution at ExxonMobil’s annual shareholder meeting, and at Duke Energy.
Had BlackRock and Vanguard not torpedoed these investor efforts, at least 16 climate-critical shareholder resolutions at S&P 500 companies would have received majority support in 2019, representing a significant corporate shift on climate, the report claims….
“The climate crisis is well upon us, and leading investors are stepping up to press fossil-fuel-dependent companies to align their strategies to the goals of the Paris agreement but some of the largest US investment companies are severely lagging,” said Majority Action’s Eli Kasargod-Staub.
“Blackrock and Vanguard have been using their shareholder voting power to undermine, rather than support, investor action on climate, including opposing every one of the resolutions proposed by the $34tn Climate Action 100+ coalition, calling for significant board room reform in response to its failure to act on climate change,” Kasargod-Staub added.
Unfortunately, it’s raining in Boston today. I expect the mothers will still show up for the demonstration though. I’ll report back if I hear anything about how it went.
UPDATES from the Boston BlackRock protest
Impeachment Inquiry News
Today a White House insider who heard Trump’s call to Ukraine president Volodymyr Zelensky will testify in the impeachment inquiry.
The New York Times: Army Officer Who Heard Trump’s Ukraine Call Reported Concerns.
A White House national security official who is a decorated Iraq war veteran plans to tell House impeachment investigators on Tuesday that he heard President Trump appeal to Ukraine’s president to investigate one of his leading political rivals, a request the aide considered so damaging to American interests that he reported it to a superior.
Lt. Col. Alexander S. Vindman of the Army, the top Ukraine expert on the National Security Council, twice registered internal objections about how Mr. Trump and his inner circle were treating Ukraine, out of what he called a “sense of duty,” he plans to tell the inquiry, according to a draft of his opening statement obtained by The New York Times.
He will be the first White House official to testify who listened in on the July 25 telephone call between Mr. Trump and President Volodymyr Zelensky of Ukraine that is at the center of the impeachment inquiry, in which Mr. Trump asked Mr. Zelensky to investigate former Vice President Joseph R. Biden Jr.
“I did not think it was proper to demand that a foreign government investigate a U.S. citizen, and I was worried about the implications for the U.S. government’s support of Ukraine,” Colonel Vindman said in his statement. “I realized that if Ukraine pursued an investigation into the Bidens and Burisma it would likely be interpreted as a partisan play which would undoubtedly result in Ukraine losing the bipartisan support it has thus far maintained.”