Climate risk - key resources for boards
Boards have a critical role in responding to climate-related issues to ensure the long-term sustainability of their organisations.
In his annual letter to CEOs around the world, Larry Fink (chair and CEO of the world’s largest investment company, BlackRock) says that climate change will cause a transformational reallocation of capital towards sustainable investments and would bring about a fundamental reshaping of finance – ultimately helping achieve a more sustainable and inclusive capitalism for greater longer-term prosperity.
Key points in Fink’s letter include:
Fink concludes that the climate crisis is fundamentally different to the various financial crises and challenges of the past 50 years and that ‘companies, investors and governments must prepare for a significant reallocation of capital’ including in response to the increasing demands of the next generation for more transparency and action in order to achieve a more sustainable and inclusive capitalism.
Larry Fink’s letter is available at blackrock.com