Slate discusses how the Firm Administering the Coronavirus Rescue Considers Climate Risks in Its Ordinary Investments. Republicans told them not to this time.
Last month the Federal Reserve tapped BlackRock, the world’s largest asset manager, to facilitate billions of dollars of purchases of securities authorized under the coronavirus economic rescue package. As the Fed has begun to implement its CARES Act–related stimulus efforts, though, it and BlackRock have sparked a partisan battle at the intersection of climate change and finance. Senate Republicans are worried that BlackRock could take climate change–related financial risks into account in making its securities purchase recommendations, as the firm has pledged to do when shaping its own investment strategies. Concerned that this approach would block fossil fuel energy and airline companies from their share of the financial rescue, Republicans are seeking to bar BlackRock from considering these risks in CARES Act purchasing. If BlackRock is going to make the best decisions for American taxpayers, it must be allowed to assess these climate risks as it does for other clients.