BlackRock CEO says investors demand sustainable strategies
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 â€œmoney moving into more sustainable strategies. And if youâ€™re not part of that construct youâ€™re just going to see less equity demand for your shares.â€
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. â€œTo me thatâ€™s greenwashing,â€ he said, adding that â€œIf a public company sells off a lot of their hydrocarbon business to a private entity, the world doesnâ€™t change.â€
Four years ago his message on corporate purpose got what he called â€œpushbackâ€ from about 40% of recipients, he said. For this yearâ€™s letter stressing climate matters, he said, the pushback level was â€œprobably less than tenâ€ percent