- °C

-

-

IMG-LOGO

India

18:13

London

13:43

Dubai

16:43

NewYork

08:43

LOGO
Covid 19 Updates Last updated: May 7, 2021, 06:19 GMT

Confirmed

156,681,524

Recovered

134,042,630

Deaths

3,269,340

BlackRock CEO says investors demand sustainable strategies

0000-00-00
IMG

Organisations that are not accepting viable business procedures should anticipate less investment as shareholders become extra attentive on subjects like climate change, BlackRock Inc CEO Laurence Fink said on Thursday.

Fink has been voicing to corporate boards they will witness “money moving into more sustainable strategies. And if you’re not part of that construct you’re just going to see less equity demand for your shares.”

Fink, heads the largest global asset management company, spoke at a climate finance conference hosted by the Institute of International Finance, which was webcast.

Similar comments have come from him in the past but a recent report from Morningstar Inc reflected how investors have pursued his description, with BlackRock iShares ETFs taking in nearly half of the $51 billion in net new deposits that U.S. sustainable funds received in 2020. The latter figure was almost a quarter of total U.S. fund flows.

Fink has said that he is not supportive of the divesture of companies with high carbon emissions, as some have supported, since the companies can still operate. “To me that’s greenwashing,” he said, adding that “If a public company sells off a lot of their hydrocarbon business to a private entity, the world doesn’t change.”

Four years ago his message on corporate purpose got what he called “pushback” from about 40% of recipients, he said. For this year’s letter stressing climate matters, he said, the pushback level was “probably less than ten” percent
 

Subscribe To Our Newsletter