![]() "I wrote last year that the next 1,000 unicorns won't be search engines or social media companies. BlackRock is investing in natural gas pipelines, with efforts made to mitigate methane emissions from those natural gas pipelines, Fink said.Īt the same time, BlackRock is providing options for investors to invest in clean tech, such as carbon capture storage pipelines and technology that turns waste into natural gas, he said. While Fink advocates the importance of measuring climate risk in business, he also says oil and gas are necessary to meet energy needs in the short-term. Scope 3 emissions, which are much harder to track, are emissions resulting from the assets in an organization's supply chain. Scope 2 emissions are the greenhouse gas emissions that are associated with the electricity, steam, heat or cooling that an organization uses. Scope 1 emissions are those greenhouse gasses that come from assets that are owned or controlled by an organization, such as boilers, furnaces or vehicles, according to the U.S Environmental Protection Agency. More than half of the S&P 500 voluntarily report their own Scope 1 and 2 emissions, Fink said. That is why Fink has pushed for climate risk disclosures at companies. "Our job is to think through and model different scenarios to understand implications for our clients' portfolios." Government policy, technological innovation, and consumer preferences will ultimately determine the pace and scale of decarbonization," Fink wrote. "It is not the role of an asset manager like BlackRock to engineer a particular outcome in the economy, and we don't know the ultimate path and timing of the transition. ![]() But if clients want to understand how climate risk will affect their investments, Blackrock will provide that information. Treasury, Fink said.īlackrock has customers who want to invest in the energy transition and others who do not, Fink said, and Blackrock serves both types. The federal government's National Flood Insurance Program, which underwrites many insurance policies in Florida, is $20.5 billion in debt and has had to borrow money from the U.S. Natural disasters cost the insurance giant Munich Re $120 billion in 2022, which Fink called "a once unthinkable figure." We're already seeing rising insurance costs in response to shifting weather patterns." ![]() In fact, it's hard to find a part of our ecology – or our economy – that's not affected," Fink wrote. There's more flooding, more wildfires, and more intense storms. "Anyone can see the impact of climate change in the natural disasters in California or Florida, in Pakistan, across Europe and Australia, and in many other places around the world. In his annual letter, Fink highlighted the ways that climate change is already impacting financial markets and the economy. Personal Loans for 670 Credit Score or Lower Personal Loans for 580 Credit Score or Lower and productivityĬompanies hope that generative A.I.-a category of tools that include OpenAI’s viral chatbot ChatGPT-could automate a large swath of knowledge work.Best Debt Consolidation Loans for Bad Credit (The Fed on Wednesday held off on raising rates again, but forecast two more increases before the end of the year.) A.I. Yet core inflation-which excludes more volatile energy and food prices-came in at 5.3%, staying above 5% for the 18th consecutive month.įink warned a few weeks ago that inflation was “still too strong, too sticky,” and so would lead to two to four more interest rate hikes from the U.S. prices rose 4% year on year in May, which is the lowest rate of inflation reported in over two years. has the huge potential to increase productivity, and transform margins across sectors,” he predicted, which would “bring down the inflation,” reports the Financial Times. A global slowdown in productivity is a “reason why we have such sticky inflation,” BlackRock CEO Larry Fink, who oversees $9 trillion in assets, said during the company’s investor day event, according to Bloomberg.
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