“There is no company whose business model won’t be profoundly affected by the transition to a net zero economy.” For a succinct indication of the direction financial markets are headed in the 2020s and beyond, look no further than the above sentence. Not so much for the words themselves, which few would argue offer a breathtakingly original insight in 2021, but because of the person who wrote them: Larry Fink. As CEO of the world’s biggest asset manager, BlackRock, which looks after a whopping $8.67tr investments worldwide, Fink’s words matter a great deal. As ever, the devil will be in the details, but if as Fink promised last month BlackRock – which has long faced pressure to be far bolder in addressing the climate risks in its massive portfolio – uses its considerable clout to push every CEO at every company it works with to set credible, transparent, science-aligned targets to achieve net zero emissions before 2050, then Fink’s statement becomes more than just an opinion, but close to a self-fulfilling prophecy.
Business Green 4th Feb 2021 read more »
Demand for responsible investment funds rose sharply last year as savers sought homes for their money that benefit the environment and society. Figures released by the Investment Association yesterday showed that net retail sales of funds that follow responsible strategies trebled to £10 billion in 2020, from £3.2 billion in 2019. Such funds attracted record flows of £1.1 billion in December, according to the association, which represents Britain’s fund management industry.
Times 5th Feb 2021 read more »