|
In
his annual letter to CEOs, Fink said they must act or face
increased wrath from investors concerned about how unsustainable
business practices might curb their future wealth.
He said BlackRock would exit investments that presented high
sustainability-related risk, including thermal coal producers,
as it participated in what he described as a "fundamental
reshaping of finance".
Fink's intervention comes at a time when investors are
increasingly pressuring financial firms to do more to combat
climate change.
The shift in global investing trends towards large asset
managers such as BlackRock, with its $7 trillion in assets, has
made it a potentially powerful lever for forcing wider corporate
action.
But BlackRock and peers such as Vanguard Group and State Street
Corp <STT.N> have been criticised for not doing enough to guide
the firms they invest in, with a Reuters analysis in October
finding they rarely challenge company management.
Activists in December said they would be monitoring Fink's
letter closely for signs of greater engagement with the climate
crisis.
BlackRock is also strengthening its commitment to transparency
in its stewardship activities, with portfolio managers
"increasingly disposed to vote against management" if they felt
companies were not making "sufficient progress on
sustainability-related disclosures".
"We don't yet know which predictions about climate change will
be most accurate nor what effects we have failed to consider.
But there is no denying the direction we are heading," the
veteran investor said in the letter.
Fink's letter specifically aligns BlackRock with the goals of
the landmark 2015 Paris Agreement, in contrast with the recent
stance of the United States which under President Donald Trump
has backed away from the climate accord.
"Every government, company and shareholder must confront climate
change," Fink said.
As well as applying pressure on companies through campaigning,
activists in recent months have succeeded in winning over major
investors in the financial sector to their cause.
Barclays <BARC.L> investors, at the urging of lobby group
ShareAction, earlier this month submitted a motion that would
force the lender to phase out fossil fuel financing faster.
(Reporting By Sinead Cruise and Lawrence White, editing by Iain
Withers and Mark Potter)
[© 2020 Thomson Reuters. All rights
reserved.] Copyright 2020 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.
|
|
