Fink again

17 February 2021 By George Hay Follow @gfhay

The $9 trillion asset manager will require heavy polluters to disclose their full carbon dioxide footprints and set short-term targets to cut emissions. That’s an improvement. But until BlackRock leans on index providers to up their game too, it’s not deploying all its heft.

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BlackRock said on Feb. 17 that companies in which it invests should set short-, medium- and long-term targets to reduce their production of carbon dioxide, allowing investors and other stakeholders to track progress and identify leaders in the goal to eliminate carbon emissions by 2050.

The asset manager also said that companies in carbon-intensive industries should disclose emissions of carbon by customers using their products, known as Scope 3, rather than just Scope 1 and 2 emissions from their own production processes.

BlackRock also said it would expect directors to have “sufficient fluency in climate risk and the energy transition to enable the whole board – rather than a single director who is a ‘climate expert’ – to provide appropriate oversight of the company’s plan and targets”. It wants members of the board and management team to have “climate expertise appropriate to the company’s business model to ensure adequate consideration of these risks and opportunities in strategy and operations”.

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