Post by account_disabled on Feb 18, 2024 1:41:35 GMT -5
The annual letter from Larry Fink, CEO of BlackRock, the world's largest asset management firm with more than $9 trillion in assets under management, is a major pronouncement in the investment industry, which has the potential to influence the decision making of other asset managers and in corporate policies around the world.
Although he proclaims himself a defender of investing based on environmental, social and governance (ESG) factors, this year the CEO did not focus as much on it. However, he has mentioned the need for a transition where fossil fuels are necessary to build a bridge to a decarbonized future, according to Edie .
Larry Fink Annual Letter
Larry Fink's annual letter this year Middle East Mobile Number List was not addressed to senior executives, but to "all stakeholders," noting that they are all "facing so many of the same problems."
Thus, the BlackRock CEO's topic focused on an imminent "regional banking crisis" and a current lack of political support to stimulate the economy. Larry's speech is significant because he has the power to influence and drive important changes to accelerate the transition to a sustainable economy.
«For years, we have considered climate risk as an investment risk. That remains true,” Fink wrote, referencing wildfires in California and floods in Pakistan. Fink also described the $120 billion that insurers had to spend to cover natural catastrophes in 2022 as a “unthinkable figure until now.”
However, unlike last year's annual letter, in which Fink stated that sustainability should act as the "north star" in capturing the "tectonic" shift towards sustainability and a net-zero emissions future, the version of 2023 of the charter reduces the focus and driving force of the low-carbon transition.
We need oil and gas: Larry Fink
This position of Fink for being in favor of fossil fuels (such as natural gas and oil) as essential for the energy transition "we need oil and gas: Larry Fink." According to him, the world still depends on hydrocarbons and that has to be admitted.
For some time now, Fink has become a target for Republican lawmakers for his support of ESG investing and the current letter from BlackRock's CEO has been interpreted by many specialists as an opportunity to defend himself and claim that it is not the role of the financial sector to be the "environmental police".
Our clients have a variety of investment objectives and perspectives. We have clients who want to invest in ways that seek to align with a particular transition path or accelerate that transition. “We have clients who choose not to.”
Larry Fink, CEO of BlackRock.
According to the BlackRock CEO's statement, governments should be the ones to enact policies to improve approaches to business practices, leaving aside the Corporate Social Responsibility (CSR) of the financial sector.
And he emphasizes that the role of an asset manager like BlackRock is not to engineer a particular outcome in the economy. Government policy, technological innovation and consumer preferences will ultimately determine the pace and scale of decarbonization. "Our job is to think about and model different scenarios to understand the implications for our clients' portfolios."
BlackRock supports oil
The language used in this year's letter is much milder compared to when BlackRock warned that senior managers could be voted out of companies that fail to act on climate risks affecting individual companies. BlackRock has historically been criticized for its handling of the sustainability performance of the companies in which it invests.
Fink calls on companies to improve their disclosure approaches. Referring to the fact that more than half of S&P 500 companies now voluntarily report Scope 1 and 2 emissions, Fink previously stated that better reporting “is essential” and called for more companies to adopt disclosure practices.
However, pointing out that we need oil and gas: Larry Fink is also showing his support for the oil and gas industry, partly in response to the ongoing energy crisis, but this he has said is delaying further investment to clean energies.
Although he proclaims himself a defender of investing based on environmental, social and governance (ESG) factors, this year the CEO did not focus as much on it. However, he has mentioned the need for a transition where fossil fuels are necessary to build a bridge to a decarbonized future, according to Edie .
Larry Fink Annual Letter
Larry Fink's annual letter this year Middle East Mobile Number List was not addressed to senior executives, but to "all stakeholders," noting that they are all "facing so many of the same problems."
Thus, the BlackRock CEO's topic focused on an imminent "regional banking crisis" and a current lack of political support to stimulate the economy. Larry's speech is significant because he has the power to influence and drive important changes to accelerate the transition to a sustainable economy.
«For years, we have considered climate risk as an investment risk. That remains true,” Fink wrote, referencing wildfires in California and floods in Pakistan. Fink also described the $120 billion that insurers had to spend to cover natural catastrophes in 2022 as a “unthinkable figure until now.”
However, unlike last year's annual letter, in which Fink stated that sustainability should act as the "north star" in capturing the "tectonic" shift towards sustainability and a net-zero emissions future, the version of 2023 of the charter reduces the focus and driving force of the low-carbon transition.
We need oil and gas: Larry Fink
This position of Fink for being in favor of fossil fuels (such as natural gas and oil) as essential for the energy transition "we need oil and gas: Larry Fink." According to him, the world still depends on hydrocarbons and that has to be admitted.
For some time now, Fink has become a target for Republican lawmakers for his support of ESG investing and the current letter from BlackRock's CEO has been interpreted by many specialists as an opportunity to defend himself and claim that it is not the role of the financial sector to be the "environmental police".
Our clients have a variety of investment objectives and perspectives. We have clients who want to invest in ways that seek to align with a particular transition path or accelerate that transition. “We have clients who choose not to.”
Larry Fink, CEO of BlackRock.
According to the BlackRock CEO's statement, governments should be the ones to enact policies to improve approaches to business practices, leaving aside the Corporate Social Responsibility (CSR) of the financial sector.
And he emphasizes that the role of an asset manager like BlackRock is not to engineer a particular outcome in the economy. Government policy, technological innovation and consumer preferences will ultimately determine the pace and scale of decarbonization. "Our job is to think about and model different scenarios to understand the implications for our clients' portfolios."
BlackRock supports oil
The language used in this year's letter is much milder compared to when BlackRock warned that senior managers could be voted out of companies that fail to act on climate risks affecting individual companies. BlackRock has historically been criticized for its handling of the sustainability performance of the companies in which it invests.
Fink calls on companies to improve their disclosure approaches. Referring to the fact that more than half of S&P 500 companies now voluntarily report Scope 1 and 2 emissions, Fink previously stated that better reporting “is essential” and called for more companies to adopt disclosure practices.
However, pointing out that we need oil and gas: Larry Fink is also showing his support for the oil and gas industry, partly in response to the ongoing energy crisis, but this he has said is delaying further investment to clean energies.