BlackRock CEO Announced Sustainability Oriented Investment Plans
BlackRock CEO Laurence D. Fink stated the firm would avoid investments in companies that “present a high sustainability-related risk,” according to The New York Times.
Fink made this statement in his annual letter to chief executives. This cemented that the firm's main goal would be environmental sustainability. BlackRock has around $7 trillion in investments and this new philosophy will drastically change its investing methodology.
“Awareness is rapidly changing, and I believe we are on the edge of a fundamental reshaping of finance,” Fink said. “The evidence on climate risk is compelling investors to reassess core assumptions about modern finance.”
Apart from the changes at BlackRock, Fink hopes that this move will serve as an example for other companies. The firm also announced that it would introduce new funds that shun fossil fuel-oriented stocks, vote against management teams not working towards sustainability, and press companies to disclose plans “for operating under a scenario where the Paris Agreement’s goal of limiting global warming to less than two degrees is fully realized.”
BlackRock CEO Laurence D. Fink stated the firm was avoiding investments that are not working towards sustainability.