Amazon Chaos: “BlackRock Is Literally Reaping Profits As The World’s Jungles Burn”

September 9, 2019 in News by RBN Staff

source: www.zerohedge.com
by Tyler Durden

“The data is clear: from the Amazon to the great forests of Africa and Southeast Asia, BlackRock is a global leader in financing forest destruction,” said Jeff Conant, senior international forest program manager with Friends of the Earth U.S., the report’s lead author.

“As long as this financial behemoth continues to unconditionally back the world’s most destructive agribusiness companies, the forests of the world, and consequently the climate and the rights of forest-dwelling people, will continue to go up in flames. BlackRock is literally reaping profits as the world’s jungles burn.”

BlackRock’s investment in deforestation-risk companies has been increasing in the last half-decade. In 4Q14, BlackRock owned roughly $1 billion in deforestation-risk investments. By 4Q18, the value of these investments jumped to $1.6 billion.

The report said the investment firm’s deforestation-linked commodity holdings are comprised mainly of index funds. In 2014, 80% of BlackRock’s deforestation-linked commodity holdings were through index funds; by 2018, it had jumped to 94%.

“Responsible stewardship is about more than just nice public statements. It is about aligning your investment strategy with broadly accepted environmental and social standards,” said Ward Warmerdam of Profundo. “It is about implementing this strategy by making demands of the companies you are invested in. And it is about using your significant leverage to ensure that your demands are met and irreversible environmental and social damage is prevented, in addition to fulfilling your fiduciary duty.”

Diving down the rabbit hole of BlackRock’s holdings shows that its investments in deforestation-risk companies have been increasing over the last half-decade.

BlackRock has made tremendous investments in pulp and paper and palm oil companies, as well as investments in beef, rubber, and timber, with many of these companies operating in South America. BlackRock’s investments in pulp and paper increased from $103 million in 2014 to $565 million in 2018, a 548% gain in value.

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