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Black Rock, which manages more than $5 trillion in assets, has released a statement on how it “engages with climate risk.” The statement has three main elements.
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Support for the Financial Stability Board’s Task Force on Climate-Related Disclosures
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Engagement with companies over assessment on climate risks
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An indication of potential support for shareholder resolutions on climate risk, where such resolutions “address a gap in investment-decision and stewardship”, and “management’s response to our prior engagement has been inadequate.”
The statement emphasizes Black Rock’s long-term approach to investing, which is the source of the best line in the statement. In summarizing letters from Black Rock’s CEO, Larry Fink, to CEOs, Black Rock notes that:
While we are patient investors, we are not infinitely patient.
I’m picturing James Earl Jones as Darth Vader saying that. I wonder what energy executives are hearing.