The Integration of Sustainability into Finance

Research from a wide range of organizations – including the UN’s Intergovernmental Panel on Climate Change and new studies from McKinsey on the socioeconomic implications of physical climate risk – is deepening understanding of how climate risk will impact both our physical world and the global system that finances economic growth.

Will cities, for example, be able to afford their infrastructure needs as climate risk reshapes the market for municipal bonds? What will happen to the 30-year mortgage – a key building block of finance – if lenders can’t estimate the impact of climate risk over such a long timeline, and if there is no viable market for flood or fire insurance in impacted areas? What happens to inflation, and in turn interest rates, if the cost of food climbs from drought and flooding? How can we model economic growth if emerging markets see their productivity decline due to extreme heat and other climate impacts?

The evidence on climate risk is compelling investors to reassess core assumptions about modern finance and, as Larry Fink outlines in his 2020 annual letter, he’s taking action as he believes sustainability now should and will be Blackrock’s new standard for investing.

Join Larry, founder and CEO of the world’s largest asset manager who oversees nearly $7 trillion at BlackRock, as he shares why he made the shift in strategy to make investment decisions with environmental sustainability as its core goal, the steps they’re taking and his thoughts how other companies can also continue in their social responsibility journeys.  

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