BlackRock CEO Larry Fink.
Christopher Goodney | Bloomberg | Getty Images
Big companies and banks shouldn’t be the only “climate police” in the world, saying Black stone CEO Larry Fink called on the government and society to play a role in climate change.
“If the government only requires listed companies to move forward, and most of them are large companies, then we will require large companies to become climate police. I don’t think this is our role,” he said, almost speaking at the Ecological Prosperity Climate Conference in Singapore .
If the world is to achieve net zero emissions, then “we can’t just ask these listed companies to move forward,” Fink said.
“There is a fundamental problem, and this is what I really worry about. I don’t want to be an environmental policeman,” he said. “I don’t want BlackRock-because we are a big investor-to tell every company that is not moving forward [that] We will divest all your shares. This is not a good result. “
Net zero emissions, also known as carbon neutral, means that an entity removes as much carbon dioxide and other greenhouse gases from the atmosphere as it emits into the atmosphere.
Fink said that although environmentalists “played an important role” in lobbying asset management companies to change, he “not necessarily agrees with what they are talking about.”
He said: “I believe they have not considered the reality of how politicians move forward or the company.”
Fink also pointed out that BlackRock acts on behalf of its customers. Environmentalists can “protest as they wish”, but “laws higher than their opinions” are acting on behalf of clients.
“This is not our money. If the client wants us to invest in the XYZ index, and 8% of the XYZ index is allocated to dirty hydrocarbons-not the whole-we must become trustees and invest in them. “
“So I am disappointed with some financial-related environmentalists. They must understand the role of finance and the role of asset owners and asset advisors,” Fink said.
Fink pointed out that as companies are increasingly under pressure to move to net zero emissions, some companies have set regulations to circumvent these climate goals.
“Listed companies are selling their dirtiest hydrocarbons, so listed companies look much better,” he said.
“But the world’s carbon footprint has not changed, it is now more opaque,” Fink said.
He also said that as the world responds to climate change, there will be “greater inequality” between developed and developing countries.
But he said that this situation can be alleviated if global governments unite.
“If we really want to eliminate the threat of a temperature increase of two or three degrees, that will not happen [if] We are dishonest to ourselves, and we think we can do this just by asking a group of listed companies to move forward,” Fink reiterated.
“We need the boldness of the government-not just the boldness of a few CEOs, because we know that our power to change the curve is very small… We need to do this together,” he said.