![]() ![]() ![]() This is the power of capitalism.” - Larry Fink argues in his 2022 annual letter. “It is not ‘woke.’ It is capitalism, driven by mutually beneficial relationships between you and the employees, customers, suppliers, and communities your company relies on to prosper. Thanks to the $10 trillion under management at BlackRock, when Larry Fink speaks, companies listen! Being the CEO of BlackRock, the world’s largest asset management firm, Larry Fink’s annual letter sets the tone each year for various stakeholders, including investors, companies, and employees. And from then on, transition to a net-zero world, decarbonisation of the global economy and ESG investing have become a focal point of Larry Fink’s annual open letter to the chief executives. "For clients who choose, we're connecting them with these investment opportunities.Two years ago, Larry Fink wrote that “ climate risk is investment risk” for the first time. Many of them will be sustainable, scalable innovators – startups that help the world decarbonize and make the energy transition affordable for all consumers. "I wrote last year that the next 1,000 unicorns won't be search engines or social media companies. BlackRock is investing in natural gas pipelines, with efforts made to mitigate methane emissions from those natural gas pipelines, Fink said.Īt the same time, BlackRock is providing options for investors to invest in clean tech, such as carbon capture storage pipelines and technology that turns waste into natural gas, he said. While Fink advocates the importance of measuring climate risk in business, he also says oil and gas are necessary to meet energy needs in the short-term. Scope 3 emissions, which are much harder to track, are emissions resulting from the assets in an organization's supply chain. Scope 2 emissions are the greenhouse gas emissions that are associated with the electricity, steam, heat or cooling that an organization uses. Scope 1 emissions are those greenhouse gasses that come from assets that are owned or controlled by an organization, such as boilers, furnaces or vehicles, according to the U.S Environmental Protection Agency. More than half of the S&P 500 voluntarily report their own Scope 1 and 2 emissions, Fink said. That is why Fink has pushed for climate risk disclosures at companies. "Our job is to think through and model different scenarios to understand implications for our clients' portfolios." Government policy, technological innovation, and consumer preferences will ultimately determine the pace and scale of decarbonization," Fink wrote. "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. But if clients want to understand how climate risk will affect their investments, Blackrock will provide that information. Treasury, Fink said.īlackrock has customers who want to invest in the energy transition and others who do not, Fink said, and Blackrock serves both types. The federal government's National Flood Insurance Program, which underwrites many insurance policies in Florida, is $20.5 billion in debt and has had to borrow money from the U.S. Natural disasters cost the insurance giant Munich Re $120 billion in 2022, which Fink called "a once unthinkable figure." We're already seeing rising insurance costs in response to shifting weather patterns." In fact, it's hard to find a part of our ecology – or our economy – that's not affected," Fink wrote. There's more flooding, more wildfires, and more intense storms. "Anyone can see the impact of climate change in the natural disasters in California or Florida, in Pakistan, across Europe and Australia, and in many other places around the world. In his annual letter, Fink highlighted the ways that climate change is already impacting financial markets and the economy. Personal Loans for 670 Credit Score or Lower Personal Loans for 580 Credit Score or Lower Best Debt Consolidation Loans for Bad Credit ![]()
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