However, Blackrock can change the companies themselves. Investors in these funds usually give investment managers the ability to work as agents in the company’s governance. These include things such as approval of the company’s council members or change the way the company operates. Due to the fact that major investors like Blackrock have a large number of stocks, the changes in their voting patterns can make a big difference.
What you plan to do
With a better sense of what the company can do, we can move to what you plan to do. In open messages, the company’s management puts its case to focus on sustainability.
“Blackrock does not see himself as a negative carbon transmission,” says CEO Larry Fink. “We believe that we have a great responsibility – as a provider of index boxes, as credit, and as a community member – to play a constructive role in the transition.” As is the case greatly, Vink says, customers’ request constantly to act on climate and sustainability issues.
Find to clarify how sustainability is suitable for the company’s credit duty. He argues that “climate change has become a specific factor in the prospects for long -term companies.” As a result, investors have begun to “re -evaluate the basic assumptions of modern financing”, which means “in the near future – and the fastest expected – there will be a task of capital.” Because of this imminent allocation, companies that focus on sustainability provide the lowest risks, and the best investment returns, says Find. This provides the logical basis for changing investment policies as the protection of the interests of its investors.
Blackrock CEO calls on companies to use recently developed standards to report climate and sustainability risks, as well as how they plan to work within the borders of the Climate Agreement in Paris. It goes on to point out that if companies fail to do this, Blackrock will assume they do not properly manage the risks. Then the great threat falls: “We will increase increasingly to vote against administration managers and the board of directors when companies do not make sufficient progress in sustainability, commercial practices and plans behind them.”