January 22, 2022 - BlackRock's Climate Stance is About Profits, Not Politics, Larry Fink says

|
January 22, 2022

BlackRock's Climate Stance is About Profits, Not Politics, Larry Fink says by Justin Baer
Appeared in the Wall Street Journal on January 17, 2022

Gina's Thoughts

"In his annual letter to the CEOs of the companies in which BlackRock invests, Mr. Fink said businesses that don't plan for a carbon-free future risk being left behind." The author writes that it is "the quest for long-term returns, and not politics, that animates the money manager's efforts". If it is true that Blackrock's quest for long-term returns guides their investment decisions, they should analyze the demand side of the equation. The International Energy Agency forecasts that oil and gas will continue to make a major contribution to the global energy mix through to 2050. Some forecasts see oil and gas providing 75% of the world's energy mix through to 2100. Demand for hydrocarbons is increasing. Every company and every industry relies on hydrocarbons. A carbon-free future is not currently possible and may never be possible. Striving towards Mr. Fink's utopian vision of a hydrocarbon-free future will not lead to long-term returns and will come with great costs to economies and people around the world.

twitterfacebook