BlackRock – the world's largest asset manager – has joined the Climate Action 100+ investor engagement scheme to help align investee companies' emissions with the Paris Agreement.
With more than $6.8trn in assets under management, BlackRock joins over 370 global investors already participating in the initiative, boosting the total wealth managed by Climate Action 100+ backers to $41trn.
In a letter to clients, BlackRock CEO Larry Fink said: “We are on the edge of fundamental reshaping of finance. Sooner than most anticipate, there will be a significant reallocation of capital.“
“A company cannot achieve long-term profits without embracing purpose and considering the needs of a broad range of stakeholders.
Investors signed up to Climate Action 100+ commit to:
• Take action to reduce greenhouse gas emissions across the value chain in line with the overarching goals of the Paris Agreement • Implement a strong governance framework which clearly articulates the board's accountability and oversight of climate change risks and opportunities • Provide enhanced corporate disclosure in line with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).
161 companies are engaged through Climate Action 100+. This includes 100 'systemically important emitters', accounting for two-thirds of annual global industrial greenhouse emissions, alongside 61 others with significant opportunities to drive the clean energy transition.
“BlackRock is one of the most influential asset managers in the world and will bring even more heft to investor engagement through Climate Action 100+,“ said Emily Chew current Climate Action 100+ Steering Committee Chair.
“We look forward to working with BlackRock to build on the initiative's success and work to ensure companies take the urgent and necessary action needed in response to the climate crisis.“
