Blackrock, the biggest asset management company globally, is facing a serious complaint at the Organisation for Economic Cooperation and Development (OECD) for allegedly contributing to climate change and human rights abuses through its investments in agribusiness.
Friends of the Earth US is accusing BlackRock of increasing investments in companies already implicated in the devastation of major forests across the globe despite alerts that this is hurting the global climate, ecosystems and rights of traditional communities.
The influence of BlackRock is certainly enormous. The company manages more than $11 trillion in assets. Though investment decisions are the responsibility of its clients, this giant financial institution offers recommendations and facilitates investments.
Is Blackrock obligated to mitigate harm caused by clients?
Friends of the Earth US noted in a post on X that the complaint highlights BlackRock’s $5 billion plus in 20 agribusinesses responsible for deforestation, biodiversity loss and Indigenous rights violations. Since 2019, BlackRock’s investments in these companies has increased.
Under the OECD Guidelines, BlackRock is obligated to mitigate and prevent harm caused by the companies it has significant shares in, the post further read, stressing that the top asset management company is increasingly endangering people and planet.
BlackRock says its mission is to create a better financial futures for its clients, by building the most respected investment and risk manager across the globe. The company said that the complaint is spurious and “meritless”.
