![]() ![]() housing market if homeowners are forced to relocate to avoid coastal flooding or persistent wildfire risk.Īs a minority shareholder in numerous companies, it’s not up to BlackRock to tell CEOs what to do, Mr. That is hitting home with consumers, who are faced with surging insurance rates. Still, he said, the costs of climate-related natural disasters are exorbitant, rising to an unprecedented US$120-billion in 2022 in terms of insured losses. “Government policy, technological innovation, and consumer preferences will ultimately determine the pace and scale of decarbonization.” “It is not the role of an asset manager like BlackRock to engineer a particular outcome in the economy, and we don’t know the ultimate path and timing of the transition,” he wrote in the letter, published on Wednesday. ![]() ![]() He stressed BlackRock’s job is to analyze a range of scenarios – including with climate change and the energy transition – to determine the impact on clients’ portfolios. This year, he combined letters to CEOs and investors into a single wide-ranging missive addressing his approach to sustainable investing, proxy voting by BlackRock clients, the economic outlook and assessment of the impact of Silicon Valley Bank’s collapse. Fink’s annual letters have become required reading in the finance world. Some, including Florida Governor Ron DeSantis, have parlayed anti-ESG messaging into campaign fodder and even public policy. Republican politicians, that BlackRock and other major fund companies are pushing a “woke” agenda on business, by demanding better performance with environmental, social and governance issues. His comments follow a year of mounting criticism, especially among some U.S. Fink said governments are in charge of making policy for how companies will disclose and cut emissions, and investment firms such as his are not “the environmental police.” CEO Larry Fink has made waves in recent years by demanding companies in funds explain in detail how they will thrive in a low-carbon economy. The chief executive officer of the world’s biggest asset manager remains certain that climate change presents a major investment risk, but contends it is not his company’s role to drive the agenda for how society should deal with it.īlackRock Inc. The coup launched by dissident hedge fund activists at Engine No 1 replaced two Exxon board members with its own candidates to help push the oil company towards a greener strategy.Please log in to bookmark this story. Last spring, BlackRock – which manages about $10tn (£7.4tn) in assets – reportedly threw its weight behind a shareholder campaign to oust several directors on the board of the US oil giant ExxonMobil. BlackRock had previously been criticised for not pushing hard enough on the issue. Make no mistake, the fair pursuit of profit is still what animates markets and long-term profitability is the measure by which markets will ultimately determine your company’s success.”Īfter Fink wrote two years ago that climate risk was an investment risk and that the firm would put sustainability at the heart of its investment decisions, many companies set out plans to become carbon-neutral. In his Dear CEO letter, Fink wrote: “It is through effective stakeholder capitalism that capital is efficiently allocated, companies achieve durable profitability, and value is created and sustained over the long term. The official said this would damage West Virginia’s economy. West Virginia’s treasurer said this week that the state’s Treasury investment board would no longer use a BlackRock fund, after the fund manager urged companies to cut their carbon emissions to net zero by 2050. “We focus on sustainability not because we’re environmentalists, but because we are capitalists and fiduciaries to our clients.” It is not a social or ideological agenda. “Stakeholder capitalism is not about politics. ![]()
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