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Critics: Blackrock's new investment fund is greenwashing

According to critics, Blackrock is trying to sell a new investment fund as sustainable even though it contains carbon-intensive companies.

Photo: BRENDAN MCDERMID/REUTERS / X90143

Global asset manager Blackrock has been criticized by many commentators in Danish financial daily Børsen over its new exchange-traded fund, US Carbon Transition Readiness. The fund cannot be purchased in Denmark, but the USD 1.25bn invested on its first day on the market means it enjoyed the biggest ETF launch ever, reports the Financial Times.

Critics believe that despite its climate-friendly sounding name, the ETF is actually a hindrance to the green transition. Non-governmental organization You Sow has analyzed the fund and found that 6.24 percent of its holdings are either not considered to be a climate-transition ready investment or are companies working with coal, oil and gas. This includes companies like Chevron and Exxon Mobile.

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