“Climate change is now the key question facing capital markets. Regulators fear it could cause the next financial crisis and investors are scrambling to incorporate it into their risk management systems,” said Lake, responding to the WEF report.
“Frankly, at this point, if you are not taking climate into consideration in investment decisions, you are betting against BlackRock and the world’s largest money managers, and that’s not a bet I would be willing to take,” he said.
Environmental concerns accounted for the top five long-term economic risks among survey respondents in the Global Risks Report including: extreme weather events, failure to properly plan for climate change, man-made environmental disasters such as oil spills, and major biodiversity loss and natural disasters, including earthquakes or tsunamis.
NASA’s Goddard Institute for Space Studies and the National Oceanic and Atmospheric Administration recently reported that the decade just ended was the hottest ever measured on Earth.
Ahead of the recent WEF report, BlackRock announced that it will be increasingly inclined to vote against management and boards of companies that do not report on their climate risks and mitigation plans.