Mississippi Orders BlackRock to Cease Woke Investing

Mississippi Secretary of State Michael Watson issued a cease-and-desist order against BlackRock for alleged “false and misleading statements” regarding the firm’s environmental, social, and governance strategy, as reported by Fox Business.

The order, issued by the Securities Division of the Secretary of State’s Office, aims to halt BlackRock’s alleged fraudulent actions and impose a multimillion-dollar administrative penalty.

According to the secretary of state’s press release, BlackRock made claims about incorporating ESG considerations into their asset management and promoting environmental goals of net zero carbon emissions without sufficient evidence to support these claims.

Watson’s order also criticized BlackRock’s participation in the Net Zero Asset Managers (NZAM) initiative, which aims to achieve net zero greenhouse gas emissions by 2050 or sooner.

Last week, the Texas Permanent School Fund divested from BlackRock due to concerns over its ESG policies, prompting a response from the management firm about fiduciary duties and long-term performance.

The press release concluded by casting doubt on the claim that BlackRock clients would benefit financially from ESG-backed funds without substantial evidence to support it.