Yesterday, the world's largest asset manager, Blackrock, announced plans to make confronting climate change a key component of his firm's strategy.
CEO Larry Fink said that the economic consequences of climate change have pushed him to make the decision. And the New York Times followed up by saying that Fink's stance "could reshape how corporate America does business".
So what will Blackrock do?
It will vote against companies that fail to account for climate risks or make progress on sustainability. It will put pressure on index providers to add more sustainable benchmarks. It will double the number of its sustainable ETFs, and it will sell US$500 million of investment in thermal coal producers by mid-2020.
This is a bold statement and the first of its kind by a money manager of this size and stature.
What is your company or organisation's sustainability strategy?
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