BlackRock to Focus on Sustainable Investments
This week investment powerhouse BlackRock – who manage $7 trillion of assets – set out a compelling case that climate change is a defining factor in companies’ long-term prospects – and their plan to tackle this by becoming a leader in sustainable investing.
The world’s largest fund manager plans to divest from companies who get more than 25% of their revenue from thermal coal by mid the 2020s, double its number of sustainability-focused exchange-traded funds it offers to 150 and increase its sustainable assets from $90 billion to $1 trillion.
BlackRock has also emphasised the need for investors to be able to analyse the climate risk of their investments, and are building new tools with a focus on sustainability analysis. They are asking companies to publish SASB and TCFD aligned disclosures that include company plans for operating in a scenario where the Paris Agreement’s goal around limiting global warming are fully realised.
A tipping point in the growing demand for sustainable investments and Environmental, Social and Governance data? Perhaps, and with an emphasis on SASB and TCFD disclosures, this might signal the start of significant engagement from the private sector for ESG reporting.
Read BlackRock’s letter to CEOs here and the letter to clients here.
