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What Climate Action 100+ Means for Investors
After years of reluctance around “green” investments, more and more businesses are starting to recognize the importance of climate change and its impact on businesses’ bottom lines. And now, some of the biggest companies across the globe are making sustainability and transparency a priority by joining Climate Action 100+.
This critical investor initiative, which launched only two years ago, today comprises more than 370 investors with over $34 trillion in assets. Climate Action 100+ and its investors are committed to guaranteeing that the world’s largest emitters of corporate greenhouse gas take action to fight climate change by curbing emissions, improving governance and strengthening climate-related financial disclosures.
DSD’s partner, BlackRock, joined Climate Action 100+ in early January 2020.
BlackRock Chairman and CEO – Larry Fink
BlackRock’s Chairman and CEO, Larry Fink, wrote in his annual letter to corporate executives that “climate change has become a defining factor in companies’ long-term prospects … and I believe we are on the edge of a fundamental reshaping of finance.” Citing research from a wide range of organizations, Fink further emphasized the need for sustainability to be at the center of a sound investment approach, saying “the evidence on climate risk is compelling investors to reassess core assumptions about modern finance.”
Businesses are seeing that the game has changed. Clean-energy transition is no longer something leading companies can put off; the consequences are too dire. While the need for government action is imperative, companies and investors are seeing that tackling climate change must also be driven from within — and those responsibilities, and opportunities, must start now.
Clean-energy transition is no longer something leading companies can put off.
Erik Schiemann, CEO of Distributed Solar Development (DSD) is heartened that BlackRock is a majority investor in DSD’s commercial energy solutions. “Investors are starting to acknowledge the evidence on climate risk and understand the impact it will soon have on their returns, if it hasn’t already,” he says. “As Mr. Fink wrote, ‘Climate risk is investment risk.’ Sustainable business practices, and transparency to customers and investors, are now the keys to rolling back the damage and ensuring a healthy planet, and robust portfolios, going forward.”
Investors who have signed on to Climate Action 100+ have clarified the stakes and are leading the way to significant and imperative goals on climate change. Companies in rapidly increasing numbers are seeing that public-facing initiatives that provide a clear, consistent picture of their sustainable strategies are not only needed but expected from their clients and shareholders.
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