I continue to believe Dale Folwell is right-thinking on many issues.
This week, he sent a letter to the investment company BlackRock demanding that its CEO, Larry Fink, resign or be removed. Why? Because of his using the power of his position to force “ESG” (Environment, Social and Governance) policies on corporations. He argues that this forces corporations to make decisions based on considerations other than the returns delivered to shareholders.
He further explains that he, as state treasurer, has a fiduciary responsibility to those who hold pensions in the North Carolina state government’s retirement system– but that BlackRock also has a fiduciary duty to its investors. The investment company derives its power from the fact that it manages numerous investment funds (ETF’s and the like) in which people invest; and these funds invest in individual corporations.
The CEO of BlackRock is Larry Fink. This is one of those unusual occasions when a person’s surname is perfectly illustrative of that same person’s character. Fink, of course, is Jewish. Fink’s demands on corporations are extortionary in nature. The message is– “If you don’t do this, you will be blocked from access to capital.”
Folwell’s control of the investment monies within the NC retirement system is significant. The article indicates the system has $14 billion invested with BlackRock funds. He therefore has some degree of clout presenting his case to BlackRock. Some state officials in other states are doing similar things; and it is hoped their actions combined will have some effect.