BlackRock announced Tuesday, Jan. 14 that it was going to be focusing on climate change going forward.
The letter, which was signed by BlackRock's CEO Larry Fink, called on CEO's to take climate change seriously and pointed out the impact that climate change can have on the financial world.
"The evidence on climate risk is compelling investors to reassess core assumptions about modern finance. Research from a wide range of organizations – including the UN’s Intergovernmental Panel on Climate Change, the BlackRock Investment Institute, and many others, including new studies from McKinsey on the socioeconomic implications of physical climate risk – is deepening our understanding of how climate risk will impact both our physical world and the global system that finances economic growth," BlackRock wrote in a letter to CEO's.
Jim Cramer praised Fink's letter.
"When the person who heads a $7 trillion investment firm will now make investment decisions based on a company's commitment to environmental sustainability, you can bet the financial world will never be the same again," wrote Cramer in his Real Money column early Tuesday morning. "That's exactly what the CEO of the incredibly important BlackRock (BLK) - Get Report investment firm calls out in his annual letter to executives. Things will never be the same. From now on, a company that can't prove it regards the earth as a stakeholder is liable to get a lower price-to-earnings multiple than one that doesn't. I cannot stress how important Fink's move is. Way too often, company management and their shareholders and the people who opine on earnings simply don't talk enough or care enough about the important."
So, what does this mean for oil? Jeff Marks, senior portfolio analyst with Action Alerts PLUS weighs in on how this shows that moving away from oil is no longer just a millennial move.
Watch the full video above for more.
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