This share prices have a 15 minute delay and are shown in the local time of the market in which the quote is displayed.
Climate change: crisis or opportunity?
Larry Fink, Chairman and Chief Executive Officer of BlackRock, one of the largest institutional investors worldwide, addresses his traditional annual letter to Chief Executives of other companies. The letter describes the BlackRock´s long-term value creation drivers such as capital management, long-term strategy, purpose and climate change strategy, and analyzes the most significant events of 2020 and future prospects that will be relevant to make its investment decisions.
This year´s letter pays great attention to climate change and the transition to a lower emissions economy. According to Larry Fink, the pandemic has not diverted attention from these issues since "it has presented such an existential crisis – such a stark reminder of our fragility – that it has driven us to confront the global threat of climate change more forcefully".
In this sense, the letter highlights the following aspects:
- Investment opportunity: Climate change and the economic opportunities arising from the transition to a lower emissions economy is one of the issues that most interests its clients as "climate transition presents a historic investment opportunity".
- Reallocating capital towards sustainable assets and accelerating the transition towards a lower carbon emissions economy: “From January through November 2020, investors in mutual funds and ETFs invested $288 billion globally in sustainable assets, a 96% increase over the whole of 2019”. In his opinion, this trend will be accelerated in 2021.
- Companies should have a strategy to face climate change and the transition to a lower emissions economy: In his opinion “as the transition accelerates, companies with a well-articulated long-term strategy, and a clear plan to address the transition to net zero economy “will be rewarded by their stakeholders.
- Information based on the standards of the Task Force on Climate Related Disclosures (TFCD): Blackrock considers essential to make investment decisions to count with high-quality public information that allows the analysis of risks and opportunities and the long-term strategy of companies to face climate change.
- “Sustainability premium”: The most sustainable and connected to stakeholders companies, have outperformed and delivered better returns than their peers during the Covid-19 crisis. “During 2020, 81% of a globally-representative selection of sustainable indexes outperformed their parent benchmarks”. This year Blackrock will pay special attention to the human resources strategy of companies in relation to "their long-term plans to improve the issues of diversity, equity and inclusion".
Filter results
According to Kristalina Georgeva IMF Managing Director, lifting growth requires three things: one, regulatory housecleaning to unleash private enterprise; two, deeper regional integration; and three, preparedness to harness AI.
According to The European House – Ambrosetti, the European Union has an opportunity to boost competitiveness and growth by simplifying regulatory and supervisory frameworks, particularly in the areas of sustainability and the financial sector.
According to Ramón Casilda Béjar, Spain, in today’s complex geopolitical landscape, has the opportunity to strengthen its role as a bridge and connecting country between Ibero-America and the European Union, revitalizing investment flows in both directions.
According to @ECB, in moments of acute stress, the public often turns to physical currency as a reliable store of value and a resilient means of payment, underscoring the crucial role it plays above and beyond everyday transactional convenience
According to Juan S. Mora-Sanguinetti, in Spain a 10% increase in regulatory volume leads to a 0.5% drop in employment in companies with fewer than 10 employees.
According to Hélène Rey “In a world where stablecoins, particularly those pegged to the dollar, become an important global payment tool, we must brace ourselves for substantial consequences”.
@judith_arnal proposes reforms for the EU to advance regulatory simplification, starting with consensus on its meaning, with competitiveness as a pillar, plus coordination mechanisms and a governance rethink.
According to @iee_org, Spain has one of the most demanding tax environments for businesses within the European and international context, which may have significant implications for competitiveness, foreign investment attraction, and business expansion.
According to Christine Lagarde for the euro to gain in status, Europe must take decisive steps by completing the single market, reducing regulatory burdens and building a robust capital markets union.
According to the Bank of Spain, in a context of strong growth in transactions and prices, the conditions under which new mortgage loans are granted currently show no signs of easing in lending standards.
McKinsey notes that European private capital is half the size of the U.S. and must play a key role in boosting competitiveness, by driving innovation, scaling firms, and mobilizing the investment needed to close the gap with other regions.
IMF states that global financial stability risks have grown significantly, driven by tighter financial conditions and heightened trade and geopolitical uncertainty.