BlackRock, the world’s biggest investor, has lost an estimated $90 billion over the last decade by ignoring financial risks of investing in fossil fuel companies, according to economists. A report from the US-based Institute for Energy Economics and Financial Analysis (IEEFA) found BlackRock’s investments in the world’s largest oil companies – including ExxonMobil, Chevron, Shell and BP – were responsible for 75 percent of its multi-billion losses. The fund manager also lost money due to the collapse of big US fossil fuel companies, including General Electric and Peabody. BlackRock has denied responsibility for its fossil fuel investments because most of its funds track investment indices which are controlled by third parties. The report calls on BlackRock to propose its own low emissions index benchmark for the passive funds to avoid risking its clients’ investments. It also asks the fund to appoint a new independent chairman and refresh its 18-strong board, where six members are former executives from companies with close ties to the fossil fuel industry.

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