BlackRock’s ETF Empire and the Future of ESG Investing

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BlackRock is one of the most influential financial companies in the world. At the end of the third quarter, it had assets under management of $ 9.464 trillion, making it the largest asset manager in the world.

This magnitude gives CEO Larry Fink a voice in international efforts to combat global warming. Fink started the decade with a letter to shareholders in which he called for a better approach to environmental, social and corporate governance issues.

These concerns stem from BlackRock’s discussions with customers around the world. Speaking at a conference at the Bank of Italy earlier this year, Fink said enforcing emissions reporting standards for publicly traded companies “will have the unintended consequences of fueling backlash against our big companies, and it will encourage a big versus small narrative it will create ever greater political polarization. “

Legal scholars like Paul Mahoney at the University of Virginia say that the pursuit of better ESG standards could push the boundaries of fiduciary responsibility.

“BlackRock, in particular, has made it pretty clear in their messages that they believe that using ESG factors across their portfolio will help them get better returns,” the law professor told CNBC.

Fink and his team built their empire by focusing on long-term risk management and technology. This made BlackRock one of the most powerful companies in the world in a relatively short period of time. Now they are using that leverage to get public corporations to take action on ESG issues.

Watch the video above to see BlackRock rise to the forefront of finance and hear their plans for the future of the global economy.


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