Reaction: NYC pension move spotlights BlackRock risk

Lander’s $42B call highlights growing alarm over BlackRock’s fossil fuel strategy

Watchdog argues BlackRock’s fossil fuel expansion and high-risk infrastructure investments are incompatible with prudent, long-term pension management

Outgoing New York City Comptroller Brad Lander has called for moving more than $42 billion in city pension funds from BlackRock due to the firm’s continued exposure to fossil fuels and high-risk infrastructure investments. Lander also called for New York City’s pensions boards to adopt a policy to cease future investments in midstream and downstream fossil fuel infrastructure, explaining that this policy would add a provision to the existing prohibition on upstream fossil fuel investments in private markets that the Systems adopted in 2023. The announcement signals mounting concern from one of the nation’s largest public pension systems over whether BlackRock’s current investment approach aligns with long-term climate, financial, and fiduciary goals.

In response, Alissa Jean Schafer, Climate and Energy Director at the Private Equity Stakeholder Project, issued the following statement:

“We applaud Comptroller Lander for taking this step. New York City pensioners should not be exposed to a firm whose expanding fossil fuel portfolio, utility takeovers, and LNG investments continue to put communities and investors at risk. We support moving away from BlackRock’s record of climate-harming investments, and we look forward to working with the newly elected Comptroller to advance these goals.

“BlackRock’s ownership of Global Infrastructure Partners means the world’s largest asset manager is now directly tied to one of the most damaging LNG terminals in the U.S. The Rio Grande LNG terminal threatens South Texas communities, sacred Indigenous lands, and fragile coastal ecosystems, and is projected to emit the equivalent of 44 coal power plants every year.

“In Minnesota, regulators ignored a lengthy record of opposition when they approved BlackRock’s takeover of ALLETE, placing essential public services in Wall Street’s hands. Private equity ownership of Minnesota Power will likely mean higher bills, less accountability, and more risk for Minnesotans. BlackRock’s short-term profit model is simply incompatible with the long-term needs of a public utility. What is at stake is simple: Minnesotans could see their power bills rise while Wall Street investors collect profits.

“BlackRock is not stopping. The firm is now in advanced talks to acquire utility giant AES, one of the largest privately traded utilities in the U.S. Minnesota Power may be just the beginning of an avalanche of Wall Street buyouts of utilities, power plants, and all the critical infrastructure that goes with it.”