BlackRock to pressure companies into action on climate change

The world's largest asset manager BlackRock has vowed to wield its influence in putting pressure on companies to contribute to combating climate change, in a series of documents to be released to its website on Monday.

BlackRock manages over $5trn in accounts and has stakes in most major corporations in the US, playing an influential role at board level on many issues. The documents, which have been obtained by Reuters, show a willingness to engage on issues such as environmental policy, as well as diversity.

The firm's stance on climate change could put further pressure on corporations in the US to cut carbon emissions and other environmentally harmful gases.

Michelle Edkins, the head of the outreach effort for BlackRock, told Reuters that not dealing with climate issues would be detrimental to business in the long run.

"There are firms where we think they're probably not moving fast enough given the risks to the business," Edkins said on Monday.

Specifically, the firm said it would focus on attempting to persuade companies of the benefits of climate-risk disclosure practices, as well as ensuring those in high risk sectors "have demonstrable fluency in how climate risk affects the business".

Oil corporations and real estate companies are likely to face particular scrutiny from BlackRock in order to provide more transparency into their affairs.

In addition, attempting to increase the boardroom presence for women and minorities was cited as an objective for the New York-based asset manager.

"Diverse boards, including but not limited to diversity of expertise, experience, age, race and gender, make better decisions," BlackRock said.