The world’s largest private asset manager said it was “disturbed by the emerging trend of political initiatives that sacrifice pension plans’ access to high-quality investments,” saying its own ESG priorities ultimately “generate better long-term financial outcomes.” It was responding to an earlier letter from 19 U.S. attorneys general who alleged that BlackRock uses investor money to pursue ESG strategies that “circumvent the best possible return on investment.” (The Logic) 

Talking point: Recent debate around ESG has become increasingly political amid higher energy prices and financial market turmoil. Some analysts and right-leaning politicians have scrutinized ESG strategies, which prioritize investments with an eye to environmental, social and governance issues, saying they sacrifice maximum returns for the sake of corporate virtue-signalling. Major investors like BlackRock have mainly stuck to their ESG priorities, however, saying they ensure capital is allocated toward companies that are considering longer-term risk.