BlackRock to exit black diamond

Kolkata: BlackRock, the world’s largest money manager with $1.8 trillion in assets under management, has decided to exit the thermal coal sector.

In a letter to its clients it said: “The most significant of…factors today relates to climate change, not only in terms of the physical risk associated with rising global temperatures, but also transition risk – namely, how the global transition to a low-carbon economy could affect a company’s long-term profitability.…investment risks presented by climate change are set to accelerate a significant reallocation of capital, which will in turn have a profound impact on the pricing of risk and assets around the world.”

In the letter it said thermal coal is significantly carbon intensive, becoming less and less economically viable, and highly exposed to regulation because of its environmental impacts.