FAZ had already reported in September 2016: "BlackRock, the world's largest investment firm with $4.9 trillion in assets under management, assumes in its study that a wave of new requirements for climate protection is on the way. 'We believe climate factors are underestimated and undervalued,' is one of the core messages of the BlackRock study. The authors draw on the Stern Review, which was produced for the British government in 2006. According to this, the damage caused by climate change could cost five to twenty per cent of global economic output (gross domestic product) annually by the year 2100. The more visible the effects of climate change become, the more likely it is that these costs will be reflected in markets.
The investment need is immense. BlackRock estimates the investment requirement in the infrastructure sector alone at $90 trillion by 2030. So far, however, only half that amount has been planned for investment. BlackRock therefore believes that private investors are needed to close the gap. But the current low-interest-rate environment may also prove helpful. After all, financing is currently extremely favourable for governments. A third of government bonds from industrialised countries currently show negative yields."
Full article: <link http: www.faz.net aktuell finanzen nachhaltigkeit-in-der-finanzwelt-14423402.html external-link-new-window external link in new>Financial markets in the age of climate change
The news agency <link http: www.reuters.com article external-link-new-window external link in new>Reuters is now reporting that BlackRock has directed its demands straight at companies — to take seriously and evaluate the climate risks of their business models:
"The move by BlackRock, a powerful force in Corporate America with $5.1 trillion under management, could bolster efforts like climate-risk disclosure practices developed by the Financial Stability Board, the international body that monitors and makes recommendations about the global financial system.
BlackRock, which holds stakes in most major U.S. corporations, identified its top "engagement priorities" for meetings this year with corporate leaders in documents to be posted on its website on Monday, with climate risk and boardroom diversity on the list. Reuters received advance copies of the materials.
Michelle Edkins, set to oversee the outreach effort as head of a 30-person team, said BlackRock might want to hear from companies about how they are assessing the risk that climate change may pose to their operations. Edkins cited the example of how rising ocean levels could swamp a real estate company's valuable beachfront property.
Some companies have shown leadership on the areas BlackRock considers priorities, Edkins said, while others need improvement. "There are firms where we think they're probably not moving fast enough given the risks to the business," Edkins said in a telephone interview on Sunday.
The action marked a step-up in BlackRock's advocacy with boards and executives, and comes after the fund giant was criticised by environmental and labour activists for not backing proxy resolutions dealing with climate change and other topics more often at shareholder meetings."
