Global investment asset management corporation BlackRock has vowed to make sustainability integral to how it invests, manages risk, constructs portfolios, builds products and engages with companies moving forward.

In his annual letter to corporate executives, CEO Larry Fink labelled climate change as a defining factor in the company’s long-term prospects and explained that we are “on the edge of a fundamental reshaping of finance.”

Having been previously criticised for its approach towards environmental issues, the asset management giant has branded climate risk as an investment risk, recognising that there is a deep responsibility for BlackRock to help clients navigate this transition. Fink has highlighted that “sustainable investing is the strongest foundation for client portfolios going forward,” and so, in his letter, set out how businesses around the globe must commit to this economic imperative.

In his annual letter to corporate executives, CEO Larry Fink labelled climate change as a defining factor in the company’s long-term prospects and explained that we are “on the edge of a fundamental reshaping of finance.”

Crucially, BlackRock’s message resonates globally and across many industries, of which the superyacht market is no exception. Fink emphasises not only the personal responsibility that all have towards implementing sustainability into our businesses and their practices, but also the fact that asset management corporations will no longer be willing to invest in companies who are not committed to change.

External investment is becoming increasingly important in the superyacht industry and its future, with companies such as Sanlorenzo and GYG trading on the stock exchange. As an industry it is our duty to ensure that it is an attractive market for investors, meaning that sustainability is non-negotiable element of modern business.

Fink has revealed that “climate change is almost invariably the issue that clients around the world raise with BlackRock.” He says that investors around the globe are asking how they should modify their portfolios and seeking to understand both the physical risks of climate change and the ways that climate policy will impact prices, costs and demand across the entire economy.

The message is clear: companies across the globe have a meaningful role in sustainable development and those which don’t place environmental responsibility at the core of their model will struggle to garner investment.

In relation to the above, issue 200 of The Superyacht Report will focus on the symbiosis of business strategy and sustainability within the superyacht industry. Click here to subscribe.

 

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