“It is already clear that 2020 will be a critical year for action on climate change,” says Lake. And “finance might be about to take the leading role.”
In his annual letter to CEOs, BlackRock leader Larry Fink says that the asset manager’s move to offer new sustainable investment options and to require companies to disclose their risk from climate change is driven by demand from BlackRock’s clients.
This reflects pressure beyond a single, albeit globally significant, entity. Further, Fink said he’s taking action not as an environmentalist, but as a capitalist, meaning this could be the turning point when business and markets begin to lead on climate action.
“In the business world, climate has transformed from a marketing issue to a business-critical risk,” says Lake. “In finance, the world’s largest money manager says climate will reshape the whole industry. Regulators fear it could cause the next financial crisis. Climate change, the biggest challenge humanity has ever faced, is already reshaping the world around us.”