Top Financiers: BlackRock, Inc.

Illuminating forest risk investments and ownership structures in BlackRock, Inc., a top ten financier of the Indonesian palm oil sector

Company Overview

BlackRock, Inc. engages in providing investment management, risk management, and advisory services for institutional and retail clients worldwide.

Its products include single and multi-asset class portfolios investing in equities, fixed income, alternatives, and money market instruments.

The company was founded by Ralph L. Schlosstein, Susan L. Wagner, Robert Steven Kapito, and Laurence Douglas Fink in 1988 and is headquartered in New York, NY.

Notable ESG policies related to deforestation:

BlackRock is considered an industry leader in ESG after CEO Larry Fink’s ground breaking letter to investors in 2020. The letter squarely framed climate risk as investment risk and called upon companies to both disclose industry specific risk through the Sustainable Accounting Standards Board and climate risk through the Task Force on Climate Related Financial Disclosures.

Deforestation risk, however, has received comparatively less attention than fossil fuels at Blackrock, which remains a major investor in forest risk companies. Despite acknowledging deforestation risk in 2016, Blackrock fell short of establishing a clear no deforestation policy.

Blackrock forestry commitments: Exclude companies failing to address deforestation risks in their supply chains, including retailers and food producers.

Reasoning given: Deforestation and forest degradation contribute to 10 to 20 percent of global CO2 emissions.

FinancierPalm Oil GroupShareholdings (% ownership)
BlackRock Advisors (UK) Ltd.Genting Singapore Ltd.0.19%
BlackRock Advisors (UK) Ltd.PT Astra International Tbk0.27%
BlackRock Advisors (UK) Ltd.PT Indofood CBP Sukses Makmur Tbk0.12%
BlackRock Advisors (UK) Ltd.PT Indofood Sukses Makmur Tbk0.30%
BlackRock Advisors (UK) Ltd.PT Perusahaan Perkebunan London Sumatra Indonesia Tbk0.15%
BlackRock Advisors (UK) Ltd.PT Sawit Sumbermas Sarana Tbk0.08%
BlackRock Advisors (UK) Ltd.Sime Darby Plantation Bhd.0.17%
BlackRock Asset Management North Asia Ltd.PT Astra International Tbk1.06%
BlackRock Asset Management North Asia Ltd.PT Indofood CBP Sukses Makmur Tbk0.06%
BlackRock Fund AdvisorsBumitama Agri Ltd.0.06%
BlackRock Fund AdvisorsFGV Holdings Bhd.0.48%
BlackRock Fund AdvisorsFirst Resources Ltd. (Singapore)0.37%
BlackRock Fund AdvisorsGenting Plantations Bhd.0.74%
BlackRock Fund AdvisorsGenting Singapore Ltd.0.88%
BlackRock Fund AdvisorsGolden Agri-Resources Ltd.0.52%
BlackRock Fund AdvisorsPT Astra International Tbk0.83%
BlackRock Fund AdvisorsPT Indofood CBP Sukses Makmur Tbk0.50%
BlackRock Fund AdvisorsPT Indofood Sukses Makmur Tbk1.13%
BlackRock Fund AdvisorsPT Perusahaan Perkebunan London Sumatra Indonesia Tbk0.73%
BlackRock Fund AdvisorsPT Sawit Sumbermas Sarana Tbk0.88%
BlackRock Fund AdvisorsSime Darby Plantation Bhd.0.61%
BlackRock Fund AdvisorsWilmar International Ltd.0.63%
BlackRock Investment Management (UK) Ltd.Genting Singapore Ltd.0.09%
BlackRock Investment Management (UK) Ltd.Golden Agri-Resources Ltd.0.07%
BlackRock Investment Management (UK) Ltd.PT Astra International Tbk0.27%

Quick facts

Lucida forest risk commodity: Palm oil

Forest risk country: Indonesia

Assets under management: USD 5.9 trillion

Shares in Forest 500 companies: USD 167 billion

Bonds in Forest 500 companies: USD 6 billion

Source: Forest 500, RSPO