BlackRock's Former Sustainable Investment Officer: "This Is Definitely Not Going To Work"
Fom his desk in midtown Manhattan Tariq Fancy once oversaw the beginning of arguably the biggest, most ambitious, effort ever to turn Wall Street green. Now, as environmentally friendly investing grows at an exponential rate, Fancy has come to a stark conclusion: This is definitely not going to work. As the former chief investment officer for sustainable investing at BlackRock, the worlds largest asset manager, Fancy was charged with embedding environmental, social and governance (ESG) corporate policies across the investment giants portfolio.
Fancy was a leader in a movement that has given many people, including investors, activists and academics, hope that after years of backing polluters, Wall Street was finally stepping up to confront the climate crisis. I have looked inside the machine and I can tell you business does not have this, Tariq told the Guardian. Not because these are bad people but because they run for-profit machines that will operate exactly as you would expect them to do, said Fancy.
Fancy, 42, worked for BlackRock between 2018 and 2019 and was the investors chief investment officer for sustainable investing at a time when BlackRock was preparing to announce a major shift in strategy.
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Moving money to green investments doesnt mean polluters will no longer find backers. The argument is similar to that of divestment, another strategy Fancy says doesnt work. If you sell your stock in a company that has a high emissions footprint, it doesnt matter. The company still exists, the only difference is that you dont own them. The company is going to keep on going the way they were and there are 20 hedge funds who will buy that stock overnight. The market is the market. I dont think the public realizes we are not talking about stopping climate change, he said. We are literally talking about selling assets so we dont get caught up in the damage when it hits.
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https://www.theguardian.com/business/2021/mar/30/tariq-fancy-environmentally-friendly-green-investing