BlackRock’s CEO’s 2020 Letter to Corporate CEOs – Explaining the World’s Largest Asset Manager’s Perspectives and Actions on the Global Climate Change Crisis




BlackRock’s CEO’s 2020 Letter to Corporate CEOs – Explaining the World’s Largest Asset Manager’s Perspectives and Actions on the Global Climate Change Crisis

The big news this week for sustainability professionals:  The publication of the much-anticipated annual letter to corporate chief executive officers by Larry Fink, Chair and CEO of BlackRock -- the world’s largest asset manager (with almost US7 trillion in Assets Under Management). 

Every year CEO Fink as fiduciary for his firm’s clients communicates the firm’s positions on key issues -- and signals the steps ahead as BlackRock enhances its sustainable investing actions as influential global fiduciary.
This week the 2020 annual letter to corporate CEO’s describes what is headlined as “A Fundamental Reshaping of Finance”.   The focus is on climate change – a defining factor in companies’ long-term prospects, explains Mr. Fink.

 About the impact of climate change on investors:  “Awareness is rapidly changing, and I believe we are on the edge of a fundamental re-shaping of finance.”  Consider some quotes from the letter:

 “In the near future – and sooner than most anticipate – there will be a significant re-allocation of capital.”

 “Climate risk is investment risk.”

 “As I have written in past letters [to CEOs in 2019, 2018] a company cannot achieve long-term profits without embracing purpose and considering the needs of considering the needs of a broad range of stakeholders.  Ultimately, purpose is the engine of long-term profitability.”

 “Every government, company, and shareholder must confront climate change.”

Separately the BlackRock CEO wrote to the firm’s investor clients; he communicated to the corporate CEOs what he is saying about BlackRock actions that will affect them. 

Such as: sustainability will be integral to BlackRock’s portfolio construction and risk management; certain investments will be exited (those presenting high sustainability-related risk, such as coal producers).  There will be new investment products that screen fossil fuels and strengthen BlackRock’s commitment to sustainability and transparency in its investment stewardship activities.

“Over time,” CEO Larry Fink posits, “companies and governments that do not respond to stakeholders and address sustainability risks will encounter growing skepticism from the markets, and in turn, a higher cost of capital. Companies and countries that champion transparency and demonstrate responsiveness…by contrast, will attract investment more effectively, including higher-quality, more patient capital.”

BlackRock was a founding member of the Task Force on Climate-related Financial Disclosures (the TCFD) and is a signatory of the UN PRI as well as the Vatican’s 2019 statement advocating carbon pricing regimes. CEO Larry Fink is one of the signatories of The Business Roundtable’s statement on corporate purpose.  BlackRock has just joined the Climate Action 100, a coalition of almost 400 investment manager managing US$40 trillion in AUM. 

There’s a volume of important information for both corporate boards and executives and sustainable investing professionals in the 2020 Larry Fink letter to CEOs of companies in BlackRock’s portfolio.

Link to the letter.

 

http://ga-institute.com/Sustainability-Update/registration/

Top Stories – Coverage of the BlackRock Missive

Fortune Magazine’s Coverage:
BlackRock CEO Larry Fink puts climate change at the center of megafund’s investment strategy 

Barron’s Coverage for 400,000 Reader-Investors:
BlackRock CEO Larry Fink say’s it’s time to tackle global warming – starting with coal

Bloomberg News:
BlackRock puts climate at center of $7 trillion strategy

 

For Those Thinking About Their Sustainability Career

Jobs You Can Do With a Sustainability Degree   
Source: Earth 911 - Sustainability is an interdisciplinary major that can take the form of a bachelor’s of art (B.A.) degree, focusing on the sustainability of environmental resources and social institutions, or a bachelor’s of science (B.S.)...

Want a sustainable business? Hire in talent   
Source: World Economic Forum - It is not surprising then that many people are wondering how the issue of sustainability influences the process of selecting senior executives and the appointment of corporate (supervisory) board members.

 

Sustainability Standards Setters & Policy Makers

Building Resilient Cities with New International Standard 
Source: ISO

Tackling the Sustainability Challenges in Construction: International Standard Just Updated
Source: ISO

JUMP TO MORE Sustainability Standard Setters & Policy Makers Stories

 

ESG / Sustainable & Responsible Investment

MSCI Launches Fixed Income ESG and Factor Indexes 
Source: MSCI

Advisers welcome potential regulatory scrutiny of ESG investing   
Source: Investment News 

Stewardship and engagement, keys to sustainability investing   
Source: The Asset -ESG Forum 

JUMP TO MORE ESG / Sustainable & Responsible Investment Stories

 

Corporate Sustainability / ESG

An important interview:  Estee Lauder’s
Al Iannuzzi shares how sustainability drives business for The Estée Lauder Companies and how he almost became a forest ranger
   
Source: Sustainable Brands - I’m excited about our new, comprehensive sustainability goals that we released last March and sharing the progress we’ve made in our recently released sustainability report. I’m particularly happy to share the goals regarding our...

Attention C-Suite: 
20 C-suite sustainability champions for 2020
   
Source: Greenbiz - If only the C-suite would get it — that environmental, social and governance issues affect the bottom line. That’s long been the refrain among sustainability professionals, who historically have encountered a mixed reception from...

 

G&A Institute Sustainability Update
Informative, insightful, thought provoking
Governance & Accountability Institute's blog focusing on the sustainable world evolving daily before our eyes. Read it, absorb it, question it and challenge.

Hello to Year 2020 and the Start of the Third Decade of the 21st Century – Climate! Climate! Climate! is The Dominant Theme of News & Commentary!

Brief Updates on Corporate Audit Committee and Auditor Oversight

 

UPCOMING EVENTS









_________________________________________

G&A RESEARCH

FLASH REPORT: 60% of Russell 1000® Are Publishing Sustainability Reports, G&A Institute’s 2018 Inaugural Benchmark Study Shows

FLASH REPORT: 86% of S&P 500 Index® Companies Publish Sustainability / Responsibility Reports in 2018

Learn More About G&A Research

________________________________________

G&A IS THE GRI DATA PARTNER FOR USA, UK & IRELAND

 

These feeds are provided for Accountability-Central in partnership with 3BL Media. 3BL Media distributes press releases, blogs, videos, podcasts, reports, newsletters and more to the growing audience of stakeholders interested in Corporate Social Responsibility (CSR) and Sustainability.  Visit 3BLMedia.com for more.

7 Leaves Brings Sustainability to Popular Vietname...
January 16, 2020

The sgENGAGE Podcast Episode 129: Measuring Impact...
January 16, 2020

Wendell Hadden Receives Ray C. Anderson Sustainabi...
January 16, 2020

Fifth Annual Women Transforming Technology Confere...
January 16, 2020

For more news and content from 3BL Media, click here.

Samsung Begins 2020 By Winning Three Awards for Commitment to Sustainability   
Source: Samsung 

Mars teams with NSIP for 100% sustainable cacao supply chain   
Source: FoodBev.com 

Mattel Commits to 100 Percent Sustainable Plastic   
Source: Triple Pundit 

JUMP TO MORE Corporate Sustainability / ESG

 

Global Sustainability News: Forward Momentum!

UNDP: increasing equality is key to sustainability   
Source: Sustainability Times 

What You Can Learn From the Rise of Sustainability-Focused Entrepreneurship   
Source: Entrepreneur 

Sustainability leads off five trends for 2020   
Source: Food Business News 

JUMP TO MORE Global Sustainability News: Forward Momentum! Stories


In the Agora: Consumers & Sustainability

2020 will be the year sustainability goes from buzzword to necessity 
Source: Food Dive 

What's on the agenda for Sustainable Food and Nutrition in 2020?   
Source: Nutra 

Demand for sustainable packaging tests snack makers’ flexibility   
Source: Baking Business 

JUMP TO MORE Consumers & Sustainability Stories

 

The Sustainability Highlights eNewsletter is prepared by Governance & Accountability Institute, Inc. based on continuous monitoring of trends and developments in Sustainability and ESG. Copyrights for other providers are noted where appropriate. Please credit the source if quoted. Content © 2009 - 2020 - All Rights Reserved.

Governance & Accountability Instiute is the "Sustainability Headquarters™" for clients in the corporate, investment, public and social sectors. Based in New York, G&A is a for-profit consulting organization providing a range of value-added strategies, services and resources related to ESG & sustainability to clients in the corporate and capital markets communities. For G&A's full range of services, click on each of the links: Sustainability / ESG Consulting Services, Communications & Recognition Services, Investor Relation Services. For more information, visit www.ga-institute.com or contact us at 646.430.8230 or info@ga-institute.com.