BlackRock has vowed to take a firmer stance on companies failing to meet ESG (environmental, social and governance) requirements by dropping them from actively-run portfolios, as part of a wider aim to become a net-zero emissions business by 2050.
In a pair of letters from BlackRock CEO Larry Fink published simultaneously – one aimed at clients and another at company bosses – the asset management giant said the ‘tectonic shift’ created by the climate fight has accelerated and needs to be addressed immediately.
Fink told company chief executives that there will be a greater focus on accessing the climate transition as an investment opportunity, as well as focusing on companies able to best articulate a long-term strategy towards energy transition.
In addition, Fink highlighted why data disclosures matter and the availability of high-level, accessible material will prove a requirement for all companies. He added that companies demonstrating an openness and willingness to engage on ESG issues will produce a more durable, long-term return for…
