BlackRock Ceo believes the climate crisis will bring a fundamental reshaping of finance with a significant reallocation of capital set to take place “sooner than most anticipate
BlackRock’s assets under management totaled almost $7 trillion in the third quarter of 2019. His comments come as business leaders, policymakers and investors prepare to travel to Davos, Switzerland for the World Economic Forum (WEF) next week.
“Climate change has become a defining factor in companies’ long-term prospects … But awareness is rapidly changing, and I believe we are on the edge of a fundamental reshaping of finance.” – Said Fink
The theme at this year will be Stakeholders for a Cohesive and Sustainable World. The United Nations has recognized climate change as “the defining issue of our time,” with a recent report calling the crisis “the greatest challenge to sustainable development.
“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. 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,” – said the chief of the world’s largest money manager.
Alongside 20 other young climate activists, Sweden’s Greta Thunberg has called on all of those attending the forum in the Swiss Alps to stop the “madness” of ongoing investments in fossil fuel exploration and extraction and “completely divest” from fossil fuels. Global leaders must also end all fossil fuel subsidies and immediately and completely divest from fossil fuels.