BlackRock Raises the Bar for Climate Leadership on Wall Street
Statement of Fred Krupp, President, Environmental Defense Fund
“Larry Fink has redefined what it means to lead on climate change in the finance sector. In his annual letter to CEOs, BlackRock’s chief executive not only called on publicly traded corporations to profoundly reassess and disclose climate risk. He went much further – announcing a set of specific steps that will hold his management teams accountable for sustainability progress, launch new funds to advance the clean energy economy, and exit investments, including coal production, that pose severe climate risk. Reallocation of capital and recognition that “climate risk is investment risk,” as he wrote, brings a new level of transparency to the finance sector—and has the potential to drive the entire sector in the right direction.
“After an InfluenceMap report last year shed light on the need for more transparent and ambitious climate leadership by leading asset managers, today’s news could mark the start of a real turning point on Wall Street and lead other major players, including Vanguard, State Street and Fidelity, to follow suit. BlackRock’s welcome move follows recent announcements from Goldman Sachs and Credit Suisse, both of which committed to stop financing new coal-fired power plants.
“Ultimately, the real leaders will emerge based not only on their ability to turn commitments into results, but also on their willingness to use the most powerful tool they have to fight climate change: their political influence. As Fink said today, governments must lead the way in transitioning to a low-carbon world, but companies and investors have a “meaningful role to play.” Indeed they do – by advocating for climate policy, directing trade associations to do the same, and allocating political spending to advance climate action. Larry Fink’s statement today was more than an important step in the right direction. It just might prove to be historic.”
- Fred Krupp, President, Environmental Defense Fund
One of the world’s leading international nonprofit organizations, Environmental Defense Fund (edf.org) creates transformational solutions to the most serious environmental problems. To do so, EDF links science, economics, law, and innovative private-sector partnerships. With more than 3 million members and offices in the United States, China, Mexico, Indonesia and the European Union, EDF’s scientists, economists, attorneys and policy experts are working in 28 countries to turn our solutions into action. Connect with us on Twitter @EnvDefenseFund
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