BlackRock’s Larry Fink to CEOs: Get serious on net-zero targets, or else
By Katherine Dunn, Fortune, January 26, 2021

Larry Fink, the chief executive of the world's largest asset manager, is doubling down on a strategy of integrating climate risks into investing, telling his fellow CEOs he expects companies in which BlackRock invests to make clear how they will achieve their net zero emissions goals.

In his annual letter..., Fink also said that the companies would need to lay out how exactly such a target is incorporated within their long-term strategies, and how it will be reviewed and measured by individual boards.

In an accompanying letter to clients, BlackRock warned it would take action against those companies that have a high carbon intensity, and which do not align with its own net zero goals. In such a case, what's the proverbial stick BlackRock would be wielding? It would use its shareholder clout to vote against the management of those laggard firms in its index portfolio-held shares, or it would drop the companies entirely from its actively managed portfolios. Read more.