Tell BlackRock to STOP financing deforestation before we lose our rainforests!

BlackRock’s investments support companies that HARASS, INTIMIDATE, CRIMINALIZE, and VIOLENTLY EXPEL INDIGENOUS PEOPLES from their land, turning vital ecosystems into vast industrial palm oil plantations to make junk food and cosmetics. Agribusiness is the world’s leading cause of deforestation and the violent land conflicts that come with it -- and BlackRock is financing some of the worst companies out there.

Jungles that once held vibrant ecosystems have turned dull and gray as BlackRock invests in greedy corporations slashing trees for profit.

We’re losing rainforests fast. With each second that passes, BlackRock funnels more money to deforestation. Please step up and take action today!

Comments

Dear Michelle Edkins,

These are challenging and confusing times for ESG, and BlackRock is right at the center of these challenges. Your firm has positioned itself as a leader in advancing a “social purpose” and recognizing that climate risk is investment risk. Yet while BlackRock has demonstrated increased stewardship around the issue of deforestation, this increased stewardship has not resulted in decreased exposure to risk or to resolving the root issues.

Let’s take the example of Indonesia’s second largest palm oil company, Astra Agro Lestari (AAL), and its owner, Astra International. As The Financial Times has reported, BlackRock is the third largest shareholder in Astra International and holds shares in AAL as well. (“BlackRock accused of ESG inconsistency over Indonesia palm oil,” FT, May 2021.) You are aware of the case.

In October 2022, six major multinationals – Danone, Hershey, P&G, Colgate Palmolive, L’Oreal, and Nestle – suspended business with AAL due to its human rights abuses and environmental destruction. Sustainalytics dropped AAL’s rating to “Severe Risk.” The Indonesian Ministry of the Environment has pressed AAL for answers. AAL continues to deny any wrongdoing. The communities impacted by AAL continue to fight for their land.

So, where is BlackRock here? Where does a rating of severe risk from a firm like Sustainalytics fit in your ESG approach? Will you continue to engage with Astra International and push them to change their ways? Will you remove them from your portfolios?

Perhaps if BlackRock had a clear threshold for exclusion based on human rights and environmental criteria, the course of action would be clear.

Don’t you think it's time BlackRock developed a binding policy to categorically address human rights, Indigenous Peoples’ rights, and deforestation risk in your portfolios?

In the palm oil sector, Astra Agro Lestari is known as a rogue actor that has consistently failed to clean up its act. BlackRock should categorically and publicly exclude AAL from its portfolios. But it’s a bigger problem than just one company. BlackRock should create and market deforestation-free funds as a default option for your clients. You should vote for shareholder resolutions to protect forests and human rights and vote out corporate board members who lag on climate. And you should put these and other actions into an investment policy statement to make your priorities clear and to lead the way for your peers.

Leading responsible investment firms are developing meaningful, comprehensive policies to address deforestation risk, and BlackRock should do the same.

Thank you.
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