BlackRock, the world's largest asset manager, will make climate change central to its investment decisions. Founder and CEO Laurence Fink, who oversees the management of about $7 trillion in funds, said that he believes we are "on the edge of a fundamental reshaping of finance" because of a warming planet.
Climate change has become the top issue raised by clients, Fink said, and will affect everything from municipal bonds to long-term mortgages for homes.
The New York firm is taking immediate action, exiting investments in coal used to generate power, and will begin asking clients to disclose their climate-related risks.
Meanwhile, the European Union plans to dedicate a quarter of its budget to tackling climate change and has set up a scheme to shift 1 trillion euros in investment toward making the economy more environmentally friendly over the next 10 years.