Investment giant BlackRock: Climate emergency will reshape finance – business live


Asset management giant promises to put environmental issues at the heart of its investment strategy

  • Latest: BlackRock pledges to fight on climate issues
  • Fink: We’ll quit thermal coal producers
  • BlackRock: Every government, company, and shareholder must confront climate change.

9.10am GMT

Investors around the world have woken up to the climate emergency, BlackRock says.

In today’s letter, Larry Fink warns that capital will be reallocated faster than many people think — that’s a coded way of saying that certain assets prices are going to tumble.

Investors are increasingly reckoning with these questions and recognizing that climate risk is investment risk. Indeed, climate change is almost invariably the top issue that clients around the world raise with BlackRock. From Europe to Australia, South America to China, Florida to Oregon, investors are asking how they should modify their portfolios. They are seeking to understand both the physical risks associated with climate change as well as the ways that climate policy will impact prices, costs, and demand across the entire economy.

These questions are driving a profound reassessment of risk and asset values. And because capital markets pull future risk forward, we will see changes in capital allocation more quickly than we see changes to the climate itself. In the near future – and sooner than most anticipate – there will be a significant reallocation of capital.

9.01am GMT

Breaking: BlackRock, the asset management titan, has announced it will put environmental sustainability at the core of its investment decisions.

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.

BlackRock does not see itself as a passive observer in the low-carbon transition. We believe we have a significant responsibility – as a provider of index funds, as a fiduciary, and as a member of society – to play a constructive role in the transition.

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Sahred From Source link World News

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