BlackRock threatens a violent reaction against companies that delay climate change action

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FILE PHOTO: Larry Fink, Executive Director of BlackRock, is at the Bloomberg Global Business Forum in New York, USA. UU., September 26, 2018. REUTERS / Shannon Stapleton / File Photo

LONDON (Reuters) – BlackRock (BLK.N) The executive president, Larry Fink, warned the boards of directors of companies to intensify efforts to face climate change or face greater anger from investors worried about how unsustainable business practices could curb their future wealth.

In his annual letter to the CEOs, Fink said his firm believed that sustainable investment was the “strongest basis” for customer portfolios and that a “significant reallocation of capital” was likely to occur in the near future. As investors moved to protect their earnings.

He said BlackRock would come out of investments that presented a high risk related to sustainability, including thermal coal producers, as it participated in what it described as a “fundamental reform of finance.”

The world’s largest investment manager is also strengthening its commitment to transparency in its management activities, with portfolio managers “increasingly willing to vote against the administration” if they feel that companies are not doing “a sufficient progress in disclosures related to sustainability. ”

“We still do not know what predictions about climate change will be more precise or what effects we have not taken into account. But the direction in which we are heading cannot be denied,” the veteran investor said in the letter.

“All governments, companies and shareholders must face climate change.”

Reports of Sinead Cruise, edition of Iain Withers

Our Standards:The Principles trust Reuters Thomson.

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