Ensia discusses how to tell if corporations are genuinely attempting to fight climate change. Experts offer criteria for separating legitimate climate plans from hollow claims.
When Larry Fink announced in mid-January he’d be putting solving the climate emergency at the center of his US$7.43 trillion investment company BlackRock’s strategy, even long-time critics acknowledged it was a huge deal. “It takes leadership and a certain kind of courage to admit that change is needed,” wrote Sierra Club executive director Michael Brune at CNBC. “Now we must keep the pressure on.”
BlackRock had earlier stated a commitment to “sustainability,” yet for years faced pressure from the Sierra Club and others over its investments in fossil fuels and Amazon deforestation. In a letter last month to shareholders, Fink promised measurable change: BlackRock would no longer invest in companies deriving 25% or more of their revenues from thermal coal.
Shortly after, however, the environmental and human rights group Urgewald calculated that less than 20% of the coal industry would be affected. “The scope of the policy is still far too limited and further steps will need to follow quickly,” it argued.