Louisiana State Treasurer John Schroder announced his state will divest funds from the multi-trillion dollar investment firm, BlackRock, due to environmental, social and governance (ESG) policies some claim boycott the oil, gas and coal industries.
“Your blatantly anti-fossil fuel policies would destroy Louisiana’s economy,” Schroder said in a letter sent Wednesday to BlackRock CEO Larry Fink.
To avoid losing state money “to the detriment of our citizens,” the Louisiana Treasury will gradually divest funds from the financial firm, Schroder wrote. The Louisiana Treasury divested $560 million from BlackRock as of Wednesday.
“Once complete, this divestment will reflect $794 million no longer entangled in BlackRock money market funds, mutual funds or exchange-traded funds (ETFs) holdings,” according to the letter.