BlackRock Has A New Attitude About Fossil Fuel Investing
Every year,
Laurence Fink, the head of BlackRock,
the largest asset manager with more than $7 trillion in assets under management,
sends a letter to clients outlining his firm’s investment goals and strategies for the coming year.
When he speaks, people listen.
This year, that letter contained some language that can only be described as a bombshell.
Here are the relevant portions of that letter.
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. (Emphasis original)
CleanTechnica
https://cleantechnica.com/2020/01/15/blackrock-has-a-new-attitude-about-fossil-fuel-investing/
BlackRock Client Letter | Sustainability
BlackRock Client Letter | Sustainability
The most significant of these factors today relates to climate change,
not only in terms of the physical risk associated with rising global temperatures,
but also transition risk –
namely, how the global transition to a low-carbon economy could affect a company’s long-term profitability.
As Larry Fink writes in his 2020 letter to CEOs,
the investment risks presented by climate change are set to accelerate a significant reallocation of capital, which will in turn have a profound impact on the pricing of risk and assets around the world..
https://www.blackrock.com/corporate/investor-relations/blackrock-client-letter