BlackRock Hopes to Lead the Sustainable Investment Charge Against Climate Risk

BlackRock CEO Larry Fink

The US firm, which has $7trn of assets under management, said it was introducing a number of initiatives meant to "put sustainability at the centre of our investment approach".

Fink's letter to BlackRock clients provides additional detail into what the shift in focus will entail, including the intention in 2020 to offer "sustainable versions of our flagship model portfolios". Excluding items, however, Wednesday's report revealed BlackRock's quarterly EPS at $8.34 instead. That helps us fund This Is Money, and keep it free to use. It also manages US$545bn of cash.

Excluding items, BlackRock earned US$8.34 per share, while analysts had expected US$7.69, according to IBES data from Refinitiv.

In the fourth quarter that ended on December 31, BlackRock generated $128.84 billion in revenue.

But it is the first time we've seen a commitment and a plan for making climate change and sustainability central to the way that BlackRock manages risk, designs products and portfolios, and engages with companies to improve disclosure and accelerate progress towards the goals of the Paris Agreement. Writing for WSJ, author Greg Ip leads off with an observation on how the Australian bushfires will negatively affect the Australian economy, he then notes that "c$3 limate has muscled to the top of business worries" and financial losses related to climate change may not be subject to successful hedging or recoupment through adaptation or insurance.

BlackRock is an investment firm worth about $7 trillion so you would think the company has a lot of room to make a statement. Investors added $263.6 billion, or 78.5% of the net flows into the firm's asset-management products previous year, to BlackRock's bond offerings.

Blackrock's approach contrasts with Norway's $1T sovereign wealth fund, which said past year it would stop investing in companies that mine more than 20M tons/year of thermal coal; Anglo, BHP and Glencore all exceed that requirement.

Global PC shipments grew 2.3% in Q419: Gartner
Apple completed the top four, IDC estimating fourth quarter 2019 deliveries at 4.7 million units, down 5.3% year-over-year. According to recent stats by research firm, Gartner, global PC shipments rose for the first time in 7 years in 2019.

"In the near future - and sooner than most anticipate - there will be a significant reallocation of capital", he added. This is also expected to impact credit spreads in other sectors, such as midstream oil and tobacco.

However, Emma Herd from the Investor Group on Climate Change (IGCC), which represents institutional investors with more than $2 trillion in funds under management, said the message sent to the global market should not be underestimated.

Other fund managers agree. "And with the impact of sustainability on investment returns increasing, we believe that sustainable investment will be a critical foundation for client portfolios going forward". Coal stocks were mixed.

Not all are convinced of an immediate pricing correlation. Yet its thermal coal revenues accounted for less than 10% of the total, thanks to the contribution from its giant trading operations.

Less than 10 U.S. investment grade electricity utilities have more than 30% coal exposure and all of them have plans to add renewables and shut down coal plants to reduce their exposure below that limit, DeVries said.

Also this week, James Murdoch, son of global media mogul Rupert Murdoch (and a company board member), made global headlines when he criticized News Corporation's influential media outlets for promoting climate denial during Australia's recent fires.

Related News:

Most liked

Beagle Bops: Spotify Launches Soothing Playlists For Dogs While Home Alone
And this is what ultimately assists Spotify's algorithms to predict and collect music that would be suited to you. Any pet owner will know that feeling of guilt when they're heading out and leaving their furry friend behind.

Tougher fines, stroke penalties for slow players - PGA Tour
But if not, you've got to give those spots to some younger guys who haven't had the chance to play and compete the way I have. Our goal with this is to really educate the players. "I don't want that to happen to the people behind me or in front of me.

Microsoft Plans to be Carbon Negative by 2030
Climate change was especially salient at this week's Democratic debate, but many environmental policy issues were not discussed. New technologies will, Microsoft says, help its suppliers and customers around the world reduce their carbon print, as well.

Federal Bureau of Investigation arrests suspected Neo-Nazis including former Canadian Army reservist
A short time later, his vehicle was found just miles from the USA border and a cache of weapons was discovered in his home. Mathews is accused of illegally crossing into the United States - specifically, Minnesota - from Canada on August 19.

'We've got players coming through': Solskjær explains Ashley Young's United exit
Inter signed Romelu Lukaku from United last summer, while former Old Trafford team-mate Alexis Sanchez is now on loan there. Ashley Young has arrived in Milan to undergo a medical ahead of a proposed move to Inter from Manchester United .

Controversial Ariana Grande lyric features on new surprise album from Eminem
He called on fans to join him in donating to the "victims and their families" through a Red Cross appeal via Twitter . Eminem , whose real name is Marshall Mathers, released his latest album - " Kamikaze " in 2018 - in the same way.

Iranians were 'lied to' over downed plane, foreign minister admits
He reiterated India's continued commitment in developing of strong and friendly relations with Iran. Iran incurred hundreds of billions of dollars in damages because of current tensions, Zarif said.

Pompeo Breaks Silence on Reported Threats to Former Ukraine Ambassador
Maddow also more than tripled the ratings pulled in by CNN's Cuomo Prime Time , which stood at 1.06 million for the night. Several of the text messages appear to suggest the former USA envoy was placed under surveillance.

Wiggles' Greg Page Collapses During Concert For Bushfire Relief
Greg Page , a founding member of the children's music group The Wiggles , has collapsed at a bushfire relief show in Sydney. The group were towards the end of their reunion concert, raising funds for bushfire victims, when the incident took place.

Winter Storm, Blizzard Warnings Issued in Minnesota
Meteorologist Christine Ferreira also predicts snow starting early in the day on Saturday before transitioning into a wintry mix. Clouds are to increase through the day on Friday but conditions will remain snow-free as temperatures top out in the upper 20s.

Real set to hijack Man Utd deal for Serie A defender
Liverpool dominated the 1970s and 1980s before slipping behind Sir Alex Ferguson's United in the 1990s and 2000s. He said: "I believe in ours, going to add to them, definitely, but in the years coming we'll see lots of them".

Ariana Grande faces copyright lawsuit over "7 rings"
Last year, a court located that Katy Perry had actually swiped a riff from Flame, an obscure Christian rap artist. In particular, Stone pointed out that repeating lines from Ariana's song: "I want it, I got it ".

China registers lowest economic growth in 29 years
On a quarterly basis, the economy grew 1.5 percent in October-December from the previous three months, in line with expectations. Revenue rose 8.0 percent in December, and the NBS noted that online retail in particular was developing strongly.

The Arrowverse's 'Crisis' Crossover Featured a Huge DCEU Cameo
Many fans interpreted that if Felicity chose to accompany Oliver in the hereafter - or whatever the multiverse equivalent is. " Crisis in Infinite Lands " has been the great crossover of DC.

Robots called xenobots constructed as 'living programmable organism'
Finally, these cells were cut and joined together under a microscope in a close approximation of the computer-generated designs. To make this, stem cells of African clawed frog ( Xenopus lavis) happen taken, ergo these robots tend to be known as xenobots .