The richest management company in the world, BlackRock, which controls more than $ 8.7 trillion in assets, has delivered an ultimatum to market participants who are not fighting climate change. Reported by VTimes.
In a letter to the heads of the companies in which BlackRock invests, its head Larry Fink indicated that the investment change is happening faster than he expected. In his opinion, what is happening is the beginning of a long but accelerating climatic transition, which opens up historical opportunities.
Fink recalled that from January to November 2020, the inflow to funds that bet on sustainable development (a term associated with a carbon-free economy) amounted to $ 228 billion. This is twice as much as in 2019.
In his opinion, soon there will be no company in the world whose business model is not affected by this situation. Therefore, BlackRock intends to demand from the recipients of their money plans to reduce their carbon emissions to zero by 2050.
In another letter, already addressed to BlackRock customers, Fink promises to put pressure on companies that either refuse to reduce emissions or will sabotage the transition. Their shares will be listed for release, and if they belong to a fund in which BlackRock invests, the management company will vote against the management of such a fund.
Securities of Russian companies are also under threat. For example, BlackRock’s active strategies include the Emerging Markets Fund, where the share of Russian companies is 4.76 percent. Lukoil is one of the ten largest investments there. The share of Russian companies in the Advantage Emerging Markets Fund strategy is 3.9 percent.
You can evaluate the expected problems now. In August, BlackRock launched a similar fund, but with environmental policy in mind. And the share of Russian companies in it is noticeably lower – 1.95 percent.
At the end of October, at the Russia Calling! investment forum Elena Loven, manager of investments in emerging markets of Swedbank, warned President Vladimir Putin that the absence of concrete plans to reduce harmful emissions threatens Russia with a sharp drop in foreign investment. The head of state said that the plans are in place and are being implemented, but did not give specifics.
In January, Anatoly Chubais, the Russian President’s Special Representative for Sustainable Development Goals, said that the Russian authorities made a “gross mistake” when they did not introduce a carbon tax and did not motivate companies to reduce emissions. Because of this, Chubais is sure, the EU will have to pay.