BlackRock, Inc. (USA): An environmentally sustainable asset investor as it claims to be?

Abstract

Purpose

Against the background of sustainable finance, this study aims to address whether global asset management firms started transforming toward more environmentally friendly investment policies according to the Agenda for Sustainable Development launched by the United Nations General Assembly in 2015.

Design/methodology/approach

The authors apply qualitative, explorative research methods through the development of the case study of BlackRock, Inc. (USA). Addressing sustainable finance, the authors compare the opposite to the editorial page (op-eds) communication strategy of BlackRock against real life for the period from 2015 until today.

Findings

The op-eds communication strategy by BlackRock is multi-faceted targeting to develop a leading sustainable reputation supported by fine-grained relationships to business and policy makers. This study empirically proves that there is a discrepancy between BlackRock’s op-eds communication contends concerning sustainable finance and the reality. Among others this study found that BlackRock still invests in fossils and increasingly launches passively managed funds with limited transparency standards in terms of sustainable finance.

Research limitations/implications

This study contributes to the corporate social responsibility literature focusing on fossil energy and sustainable finance. As BlackRock did not reply to the authors’ requests for conducting interviews, the authors rely on a broad range of secondary sources including material provided by non-governmental organizations. This study proposes that research should be amplified by further empirical studies among various sustainable finance stakeholders based on the research propositions the authors have developed as a result of this study.

Practical implications

This research provides empirical evidence for business executives and policy decision-makers involved in the energy industry, corporate ethics and global financial asset management.

Social implications

This study provides insights toward sustainable finance policies of BlackRock with corresponding outcomes related to global climate change and its impact on societies.

Originality/value

This study delivers empirical evidence on the energy transformation from fossils toward renewables against the background of sustainable finance strategies of large asset management enterprises such as BlackRock which is rare to find in the literature.