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BlackRock’s ETF Empire and the Future of ESG Investing


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

This scale gives CEO Larry Fink a voice in the international effort to fight global warming. Fink kicked off the decade with a letter to shareholders calling for better management of environmental, social and corporate governance issues.

These concerns arise from BlackRock’s conversations with customers around the world. At a conference at the Bank of Italy earlier this year, Fink said that enforcing emissions reporting standards for state-owned companies “will have the unintended consequences of fueling a backlash against our big companies.” , and that will promote a big versus small narrative, and it will create more and more political polarization. “

Legal scholars like Paul Mahoney of the University of Virginia say the push for better ESG standards can transcend typical boundaries of fiduciary responsibility.

“BlackRock in particular made it clear in their post that they believe using ESG factors in their portfolio will help them generate better returns,” the CNBC law professor said.

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

Watch the video above to see how BlackRock rose to the top of the financial world and learn about their plans for the future of the global economy.