BlackRock Raise Concerns on Material Climate Risks

On Thursday, BlackRock said to keep pushing companies for information on their treatment for material climate-related risks. Its stock price increased by 0.53% to $651.76 per share on March 23. Nonetheless, it is expected to decline by -0.70% to $647.23 apiece in the upcoming session.

The feedback led the firm to be between officials overemphasizing environmental, social, and governance investing factors. Also, experts noted that $8.60 trillion in assets could encourage companies to deal with climate issues.

Furthermore, BlackRock would concentrate on its engagements with portfolio businesses. They would tackle board quality and effectiveness, its strategies, and purpose and financial resilience.  In addition, they will talk about climate-related risks and natural capital and how the firm affects people, especially its workers.

According to the world’s top asset managers, their interactions with companies will push the discourse on material risks. In addition, it would push through with opportunities related to its business models and sectors in 2022.

BlackRock CEO Laurence Fink said that environmental concerns would involve water use, land use, waste management, and climate risk. The statements were found in his annual letter. He added that the entity has been seeking disclosures about its plans to work with energy transition. However, Fink said it is not their place to tell other businesses what to do.

KKR and BlackRock Explore new Pipeline

According to analysts, KKR and BlackRock look forward to bringing new backers to invest in an oil pipeline network. It is from the Abu Dhabi National Oil Co.

In 2019, the two companies purchased a stake in Adnoc Oil Pipelines, the first investment of Middle East producers. The pipeline has leases on 18 channels as the Abu Dhabi state oil firms manage them.

Moreover, BlackRock and KKR could continue handling the stake as they allow investors to cash out. Besides, investment firms have relied more on structures like continuation funds as alternatives. This also includes initial public offerings of their portfolio partners.

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