Home News ‘It’s capitalism’ BlackRock’s Larry Fink calls for taking climate change seriously

‘It’s capitalism’ BlackRock’s Larry Fink calls for taking climate change seriously

‘It’s capitalism’ BlackRock’s Larry Fink calls for taking climate change seriously

BlackRock’s CEO said that companies will achieve long-term profitability and value only if they reassess their priorities.

“Make no mistake, the fair pursuit of profit continues to drive the markets and long-term profitability is the measure by which the markets will ultimately determine the success of your company,” he said in his letter.

The businessman also highlighted that the pandemic changed the way companies operate, the way they work and consumption habits, so only those who manage to adapt, the most innovative, will be the ones who will be able to grow.

As an example of transformation and innovation, Fink pointed to the auto industry, whose manufacturers are vying for the future of electrics.

“I believe that the decarbonization of the global economy will create the greatest investment opportunity of our lifetime. It will also leave behind companies that do not adapt, regardless of what industry they are in. And just as some companies are at risk of being behind, so do cities and countries that do not plan for the future,” the letter states.

He even considers that the next ‘unicorn’ companies will not be those dedicated to social networks but those that help the world to decarbonise and make the energy transition affordable for all consumers.

BlackRock will not seek wholesale divestment from oil and gas companies, as there are companies in the industry making changes that will be essential to achieving net-zero emissions.

“Any plan that focuses solely on limiting supply and failing to address hydrocarbon demand will drive up energy prices for those who can least afford it, leading to further polarization around climate change and eroding progress,” Fink said.

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