BlackRock exit a major blow to Mark Carney's net-zero finance alliance
The world's largest asset manager has abandoned a leading climate finance coalition, marking the latest and most significant departure from the coalition created by former Bank of Canada governor and potential Liberal leadership candidate Mark Carney.
BlackRock, which manages approximately $11.5 trillion USD, said it would leave the Glasgow Financial Alliance for Net Zero (GFANZ) because of "confusion" about its practices and "legal inquiries from various public officials."
The departure follows an exodus of major U.S. banks, including Goldman Sachs, JPMorgan Chase, and Bank of America, from the alliance amid growing Republican opposition to environmental, social, and governance (ESG) initiatives.
Launched by Carney at the 2021 COP climate summit in Glasgow, GFANZ initially united 450 financial firms controlling $130 trillion USD in assets.
GFANZ members pledged to redirect financing toward projects supporting net-zero emissions by 2050.
The alliance has responded to the wave of departures by loosening its requirements.
New members no longer need net-zero commitments to join, and the organization will now focus on supporting emission reductions in developing economies.
Canadian banks have so far maintained their membership, with eight institutions, including the Big Six, remaining in the banking coalition.
However, recent comments from Royal Bank of Canada and Bank of Montreal executives suggest that more departures could occur soon.
The setback is potentially significant for Carney, who has made climate finance his primary focus since leaving the Bank of England in 2020.
The weakening of his flagship initiative could impact his expected bid for the Liberal Party leadership.
Carney's run for the Liberal leadership is backed by 30 MPs.
GFANZ claims about 700 members across 55 jurisdictions.
The recent changes, including relaxed membership criteria, signal a significant shift from its original ambitious net-zero by 2050 targets.
