The 2020 annual letter to CEOs around the world from BlackRock CEO Larry Fink contains what might turn out to be a reasons for optimism about the role of big business in combatting the climate emergency: the company, the world’s largest investment fund, with nearly $7 trillion under direct management, will avoid investing in companies with high sustainability risks or that are not transparent in reporting their position on environmental targets.
This would mean, for example, that companies with coal-related assets will no longer be able to access BlackRock investments. BlackRock says it won’t only put pressure on energy companies, but across all industries and also on other investment funds, and even talks about using its position as an investor on boards to challenge directors seen as not doing enough in this regard and even to try to replace them.
The letter is worth reading in detail, and also discusses how the evidence of current environmental risk is leading investors to a “fundamental reshaping of finance”. BlackRock’s idea is to pressure companies to disclose the tangible and measurable plans they have to operate in a scenario where the objective of the Paris Agreement to limit global warming to less than two degrees is fully met. What the United Nations seems unable to achieve through countless conventions, could start becoming a reality thanks to investment funds, the players with real weight in the financing and capitalization of many companies around the world.
Meanwhile, Microsoft, one of the few companies in the world with a market capitalization of more than $1 trillion, has pledged to become carbon negative by 2030, offsetting its total carbon dioxide emissions by 2050, setting up a $1 billion fund for sustainable technological innovation.
Microsoft’s video explains the parameters, types of emissions, and why it is important for all companies to implement reduction programs: this means applying pressure on those who do nothing, as well as providing more information for consumers to take direct action by boycotting them.
Climate skepticism or denial is no longer acceptable or credible. The science can’t be ignored, contrary to what the oil and coal lobbies say.
The time for action has come.
(En español, aquí)
—
Previously published on medium with Creative Commons License
—
◊♦◊
Talk to you soon.
If you believe in the work we are doing here at The Good Men Project and want to join our calls on a regular basis, please join us as a Premium Member, today.
All Premium Members get to view The Good Men Project with NO ADS.
Need more info? A complete list of benefits is here.
—
Photo credit: istockphoto