BlackRock
CEO Larry Fink wants to make climate change at the top of the priority list mainly because he believes that climate change is currently redefining and remolding the entire financial system of the world. Although there will be a great deal of financial risk involved in climate change, Fink believes that making these types of investments will be well worth the risk.
As one of its plans for 2021, BlackRock hopes to bring about changes to the low-carbon economy, report stakeholders and business interests, and to include a plan that involves racial and gender equality. Its ultimate plan is to increase shareholder over any sustainability issues, and to look more closely for any type of climate change.
For the future of BlackRock, climate change will not only change the way that finances are utilized and viewed, but will also increase environmental sustainability, thus having it as a key goal for investment. One of CEO Larry Fink's goals is not only to utilize these sources, but also to "present a high sustainability-related risk," particularly found in energy firms among other companies in order that they may reconsider their output into the environment. This in turn will prove to implement the changes necessary to bring about financial investment.
Since there are is a vast array of companies who are not taking action when it comes to the safety of the environment and the overall prevention of carbon emission spreading, "the $7.4 trillion manager plans to take shareholder action against any businesses that are not making significant efforts to curb carbon emissions."
Although there are many challenges involved in linking climate change to investment strategies, CEO Larry Fink of BlackRock has proven that he will take the necessary action steps in order to make this a possibility. Time will only tell whether these investments will be worth it, but given that BlackRock is so fiscally successful, Fink seems to choose his investments wisely, therefore proving that the business will thrive as well as the link to the climate change.
- https://www.npr.org/2020/01/14/796252481/worlds-largest-asset-manager-puts-climate-at-the-center-of-its-investment-strate
- https://www.nytimes.com/2020/01/14/business/dealbook/larry-fink-blackrock-climate-change.html
- https://tvshowcity.com/2020/12/16/blackrock-makes-climate-change-central-to-its-investment-strategy-for-2021/
- https://www.ai-cio.com/news/blackrock-double-climate-offenders-2021/?apos=1_art