BlackRock: “climate change has become a defining factor”

In Larry Fink’s annual letter to CEOs, BlackRock’s boss has highlighted the climate emergency and how it must change the way that investments are made.

Fink writes: “Climate change has become a defining factor in companies’ long-term prospects. Last September, when millions of people took to the streets to demand action on climate change, many of them emphasized the significant and lasting impact that it will have on economic growth and prosperity – a risk that markets to date have been slower to reflect. But awareness is rapidly changing, and I believe we are on the edge of a fundamental reshaping of finance.”

Fink lists measures that include making sustainability integral to portfolio construction and risk management; divestment from areas that have a high sustainability-related risk, creating new investment products that screen fossil fuels; and strengthening transparency.

Blackrock also issued a letter to investors – but it is clear that from being something of a ‘bogeyman’ to sustainable investment in the past, the company is now well and truly on a path to be a pioneer, and the letter comes only days after BlackRock signed up to Climate Action 100+ as reported here.

Full letter here.

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