BlackRock Inc. will ditch investments with high sustainability-related risk as climate concerns drive a sweeping change in the way the world’s largest asset manager invests its $7 trillion in assets. “Climate change has become a defining factor in companies’ long-term prospects,” Chief Executive Officer Larry Fink wrote in his annual letter to corporate executives on Tuesday. “Awareness is rapidly changing, and I believe we are on the edge of a fundamental reshaping of finance.” Fink is tackling the subject as asset managers come under greater pressure on sustainability and climate change. BlackRock has been moving toward a more public stance on climate, as activists and non-profit groups increasingly scrutinize the firm’s behavior and voting record around environmental issues. Fink outlined a number of initiatives, including: making sustainability integral to portfolio construction and risk management; exiting investments that present a high sustainability-related risk, such as thermal coal producers; launching new investment products that screen fossil fuels; and strengthening the firm’s commitment to sustainability and transparency in its investment stewardship activities. To view the full article visit Fortune .
