World’s Biggest Fund: “Prepare for a significant reallocation of capital”

Why BlackRock’s Larry Fink warns climate change is on the edge of reshaping finance

Rupert Steiner, January 14, 2020 (MarketWatch)

“Sustainable investments that take into account climate change will deliver better returns, says BlackRock founder Larry Fink in his annual letter to chief executives…[It reports that a “significant reallocation of capital” will lead to “a fundamental reshaping of finance” because climate] change has become a defining factor in companies’ long-term prospects…The evidence on climate risk is compelling investors to reassess core assumptions about modern finance…

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Investors are increasingly recognizing that climate risk is investment risk…Because capital markets pull future risk forward, we will see changes in capital allocation more quickly than we see changes in climate…[Fink announced Blackrock will focus on sustainability and push] companies for more transparency and disclosure of climate risks, and quitting investments in some thermal coal producers…” click here for more

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