BlackRock Calls on Financial Market to Fight Climate Change BlackRock Chief Executive Officer Larry Fink urged business leaders to put more effort into fighting climate change. Otherwise, they risk facing the ire of investors, who are concerned that this problem […]
BlackRock Calls on Financial Market to Fight Climate Change
BlackRock Chief Executive Officer Larry Fink urged business leaders to put more effort into fighting climate change. Otherwise, they risk facing the ire of investors, who are concerned that this problem may limit their future fortune..
In his annual letter to CEO, Fink wrote that his company considers sustainable investment «the strongest foundation» for client portfolios as investors increasingly look to protecting their profits.
He also said that BlackRock will stop investments that pose a high climate risk. Thermal coal producers are included in this list.
All of the above is happening at a time when investors are increasingly putting pressure on financial companies. asking for a more proactive response to climate change amid growing public acceptance of the issue.
BlackRock has faced harsh criticism in the past for not doing enough to motivate the companies it invests in. Activists in December said they will be closely monitoring to ensure that the message of Fink’s letter begins to bring real results..
BlackRock is also increasing transparency in its coordinating activities, with portfolio managers increasingly inclined to vote against management if they feel that companies are not making enough progress in disclosing information related to financial strength..
«We do not yet know which predictions on climate change will be the most accurate, and which consequences we did not take into account.. But it cannot be denied that we are as immersed in this problem as possible. Any government, company or shareholder must confront climate change», – the letter says.
In addition to putting pressure on companies, activists have managed to win over large investors in the financial sector in recent months..
Barclays investors, at the urging of the lobbying group ShareAction, presented a proposal this month that would force the lender to move away from fossil fuel financing faster..