How BlackRock And The Rest Of The ‘Climate Cartel’ Stacked Exxon’s Board With Fossil Fuel Haters

Skip to comments.

Posted on 01/19/2025 12:24:04 PM PST by MtnClimber

The Big Three used the power they derive from investing other people’s money to force compliance with a radical political goal.

A recent House Judiciary Committee report details how America’s largest financial institutions, colluding with climate activists, imposed radical environmental policies on the American economy, subverting both our self-government and free markets. It focuses on the successful effort to insert climate activist directors on the board of energy giant ExxonMobil.

According to the report, there is “substantial evidence of a ‘climate cartel’ of financial institutions” including the “Big Three” asset managers (BlackRock, State Street, and Vanguard), several massive state pension funds, European investment firms, and the two foreign-owned proxy advisory firms that dominate the American market.

This cartel coordinated its efforts through a network of “alliances” that included “left-wing environmental activist” groups such as the Glasgow Financial Alliance for Net Zero and The Net Zero Asset Managers initiative (NZAM). The Big Three belonged to both.

The cartel made Exxon a “focus company” on its “climate blacklist,” subjecting Exxon to “a barrage of shareholder pressure campaigns — more than any other company in the world” — all designed to force Exxon to reduce its fossil fuel production.

The Big Three’s support was “crucial” to the success of this effort. Combined, they owned 20.5 percent of Exxon’s shares. The cartel believed that was enough “clout to change outcomes.” As it turned out, it was.

In 2021, the cartel used a fledgling activist hedge fund called Engine No. 1 to nominate environmentalists to replace Exxon board members. At first, people thought it was a joke. It wasn’t. BlackRock voted for three of the nominees. State Street and Vanguard voted for two. All three climate activists were elected to Exxon’s board.

Then it got worse. As absurd as it sounds, within less than a year, Exxon — our nation’s largest and most profitable oil company — adopted a policy of net zero carbon emissions by 2050. So America’s preeminent oil company now supports severely reducing if not eliminating the very product that justifies its existence. Why would Exxon do that?

Well, not because the people’s elected representatives voted to enact such a self-destructive policy. Despite extreme media and activist pressure, there is no legislation requiring Exxon to adopt a net zero policy — because it’s a ridiculous thing for an oil company to do, and many Americans do not support it.

Nor was there a lack of consumer demand for Exxon’s products. On the contrary, the demand for oil is accelerating worldwide.

Nor was it in the best financial interests of Exxon’s actual shareholders (the Big Three’s investor clients) for Exxon to pursue climate commitments at the expense of its most profitable products.

It happened because the Big Three used the power they derive from investing other people’s money to force compliance with a radical political goal, overriding both our self-government and our consumer-driven free market economy.

But what about the Big Three’s fiduciary duty to invest solely in their clients’ best financial interests? Even lawyers affiliated with the environmental activist group Climate Action 100+ — of which both BlackRock and State Street were members — thought that “the economic and social costs” of Paris Agreement compliance “are so high” that they do not align with the fiduciary duty that asset managers owe their clients.

On the upside, the Exxon vote brought the cartel’s radical climate activism out in the open. Not surprisingly, people reacted. State legislators passed fiduciary duty legislation. Republican AGs sent letters to the Big Three, alleging that they had violated their fiduciary duties, and Tenessee filed a lawsuit against BlackRock. Eleven states filed an antitrust case against the Big Three. And now we have the House Judiciary Committee finding of “substantial evidence of collusion and anticompetitive behavior” with the Trump administration about to take office....SNIP

Click here: to donate by Credit Card

Or here: to donate by PayPal

Or by mail to: Free Republic, LLC - PO Box 9771 - Fresno, CA 93794

Thank you very much and God bless you.

1 posted on 01/19/2025 12:24:04 PM PST by MtnClimber

To: MtnClimber

2 posted on 01/19/2025 12:24:22 PM PST by MtnClimber (For photos of scenery, wildlife and climbing, click on my screen name for my FR home page.)

To: MtnClimber

3 posted on 01/19/2025 12:28:37 PM PST by Tell It Right (1 Thessalonians 5:21 -- Put everything to the test, hold fast to that which is true.)

To: MtnClimber

4 posted on 01/19/2025 12:30:11 PM PST by Tell It Right (1 Thessalonians 5:21 -- Put everything to the test, hold fast to that which is true.)

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

FreeRepublic.com is powered by software copyright 2000-2008 John Robinson