BlackRock is one of 273 signatories on the Net Zero Asset Managers initiative, a group that has committed to support the goal of the Paris Agreement to limit global temperature rises to 1.5 degrees Celsius and to support investing aligned with achieving net-zero emissions by 2050 or sooner.
A spokeswoman for the treasurer did not provide further information about the total amount the treasurer’s office has divested from BlackRock over the last five years, but said the final $200 million divestment will come from the state’s college savings portfolio. Mr. Loftis administers the $3.2 billion Future Scholar 529 College Savings Plan Financial Advisor Program and the $2 billion Future Scholar 529 College Savings Plan Direct Program.
Mr. Loftis serves as the “state’s banker,” managing, investing and retaining custody in a host of public funds, according to his office’s website. The South Carolina Retirement System Investment Commission manages the assets of the $38.3 billion South Carolina Retirement Systems on behalf of the South Carolina Public Employee Benefit Authority, Columbia, and Mr. Loftis serves as the commission’s custodian.
A commission spokeswoman did not immediately respond to a request for comment.
“As the elected state treasurer, it’s my obligation to our citizens and government agencies to act in their best interests by prudently investing and managing $70 billion in public funds,” said Mr. Loftis, who is an overwhelming favorite to win re-election next month. “I have no interest in allowing the whims of CEOs on Wall Street and their special interest friends to supplant the voices of our citizens nor the decisions of their elected representatives.”
In a statement, a BlackRock spokesman said the manager “has built its business on providing our clients choice to reflect their unique goals and preferences. While the actions of some state treasurers have attracted media headlines, they do not reflect the actions of the broad population of our clients who, for example, have allocated $1.5 trillion of net new business to BlackRock since the beginning of 2019. We remain committed to offering our clients choice and delivering them the best financial outcomes consistent with their preferences.”
Of note, the Louisiana Department of Treasury, Baton Rouge, on Oct. 5 announced that it was divesting from $794 million invested with BlackRock due to the manager's commitment to net-zero.
