British hedge fund activist takes aim at BlackRock over ESG

Plus, how COP28's chairman Al Jaber was linked to the controversial bid for The Daily Telegraph

In today’s edition:

— How a tiny British hedge fund activist plans a proxy fight with the world’s largest fund manager over ESG

— There are fewer places in the world where you can find a breath of fresh air

— COP28 Chairman Al Jaber turns up in a British media battle

— You may find fewer treats at your Easter egg hunt. Blame the cocoa market catastrophe

— Mexico City is the latest big urban center to endure a water crisis. It won’t be the last

— Electric demand forecasts for 2028 in U.S. say utilities will need twice as much power

There’s no escaping the deadly heatwave scorching Brazil. Rio de Janeiro’s heat index set a new record Monday, hitting 144.1°F, the highest in a decade, according to weather officials. Above, Ipanema beach. Photo: Rodrigo Soldon Souza/flickr.

LONDON (Callaway Climate Insights) — Back in Old Blighty for a spell and almost the first headline I saw trumpeted another attack on BlackRock BLK 0.00%↑ and its disappearing environmental, social and governance (ESG) campaign.

Bluebell Capital, a tiny British hedge fund activist, to date best known for shaking up yogurt giant Danone a few years back, and pushing BP to reduce oil production cuts, reportedly plans to take a shot next month at the world’s largest asset manager ahead of its annual shareholders meeting in late May.

While some hedge funds have made small waves by railing against sustainable investing in the past, most of the attacks on Wall Street’s ESG advocates, as BlackRock has been, have come from red state politicians and pension managers associated with them.

Shareholder proxy fights are usually campaigns by climate advocates to get companies to do more about global warming, not less. That a hedge fund, whose clients are looking for premium investment returns, would take a swing at one of the industry leaders like this is notable. BlackRock head Larry Fink usually brushes off anti-ESG attacks, though lately he’s been known to substitute “transition financing” for ESG investing whenever possible.

The spreading of America’s culture wars overseas is a dangerous thing, though the British Conservative government began shifting against climate progress last year to a more populist, pro-energy stance ahead of a likely election later this year. Now that The City and Wall Street are carping at each other about ESG, it is inevitable that other fund managers — especially public ones — will be watching over their shoulders. Stay tuned on this one. . . .

Don’t forget to contact me directly if you have suggestions or ideas at dcallaway@callawayclimateinsights.com.

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On a clear day in Finland, you can breathe forever. Photo: Henry Söderlund/flickr.

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