London Daily

Focus on the big picture.
Wednesday, Mar 04, 2026

Blackrock chief: ‘How Covid could help save the planet’

Blackrock chief: ‘How Covid could help save the planet’

The pandemic has exacted a terrible toll on human life and livelihoods. It is hard to see how anything that could possibly be described as positive could come out of such a devastating crisis.

But the world's biggest money manager suggests there may be one.

Blackrock manages $8.7 trillion dollars of savers' money. It is probably the most influential financial firm in the world.

Larry Fink, the chief executive of Blackrock, in his annual letter to the bosses of all the companies in which that colossal sum is invested, says the pandemic could ultimately help in the fight against an even greater crisis.

"I believe that the pandemic has presented such an existential crisis - such a stark reminder of our fragility - that it has driven us to confront the global threat of climate change more forcefully and to consider how, like the pandemic, it will alter our lives."

Sustainable investments


He argues this is not just talk: you can measure it and that it has accelerated a re-allocation of global capital towards environmentally sustainable businesses.

When the pandemic hit, investors ran to the hills. They dumped their shareholdings and turned them into cash. The Dow Jones index of the biggest companies in the US lost 10,000 points, nearly a third, in a matter of days.



The stock market has rebounded as investors look hopefully to a post-pandemic world - their moods enhanced by enormous amounts of emergency financial drugs such as money printing and massive government borrowing and spending.

But when the investors came out of the hills they came down a different route - investing in different companies than they ones they used to own. Larry Fink notes that investors pumped $288bn globally in sustainable assets, a 96% increase over the whole of 2019.

Managing people's money is not a camp fire sing song. You need to deliver results or the pension funds will take their money elsewhere.

Here again, Larry Fink insists you don't have to sacrifice a good return for a clean planet and a clear conscience. The value of companies with better environmental, social and governance profiles increased faster than others during 2020.

A lot of this may be dismissed as "greenwash" - tokenistic attempts on the part of businesses to keep the money coming.

Changing attitudes


It's also true that Blackrock invests hundreds of billions in "index trackers", which mean they will have a holding in a company as long as it is in a big global index - like the FTSE 100, which is chock a block with oil, gas and mining companies from which an independent sustainable investor would recoil.

Some of the sustainable investment outperformance may also be due to it being the new look you have to copy to look current.



However, all businesses go bust unless they go where their customers tell them to go. Last week, the Church of England dumped shares in FTSE stalwart BP despite the new bosses pledges to make the energy company carbon neutral by 2050.

Big UK money managers like Legal & General and Aviva have their own lists of companies they will not invest in, and report that investing attitudes on the part of their customers are moving fast.

It has proved irresistible for governments around the world to promise they will "build back better" - it may also prove hard to resist the yearning to return to what we had before - and if cheap oil for example helps us do that then so be it.

But when the man with the $9 trillion purse strings speaks direct to company chief executives, they tend to listen. And Larry Fink says the pandemic has kicked in a window that was already ajar - a chance for capitalism to reappraise where its headed.

Newsletter

Related Articles

0:00
0:00
Close
Trump Says UK–US ‘Special Relationship’ Is Diminished Amid Middle East Dispute
UK Economic Forecasts Face Fresh Strain from Middle East Conflict and Rising Energy Costs
UK Reaffirms Close US Ties After Trump’s Public Criticism
Reeves Stresses Stability and Fiscal Discipline in UK Budget Update as Growth Outlook Shifts
UK Deploys Royal Navy Destroyer HMS Dragon to Cyprus After Drone Strike on RAF Base
Green Party Surges Past Labour in New UK Poll as Traditional Party Support Crumbles
Majority of Britons Oppose U.S. Use of UK Military Bases in Iran Conflict
UK Intensifies Evacuation Efforts from Oman, Working with Airlines to Boost Flight Capacity
Trump Condemns UK and Spain in Unusually Sharp Rift Over Iran Military Action
Trump Repeats UK Claims That Diverge from Verified Facts Amid Diplomatic Strain
UK Arrests Prominent Figures Linked to Epstein Network as Questions Mount Over US Action
Trump Says UK ‘Took Far Too Long’ to Approve Use of Airbases for Iran Strikes
Scope of Britain’s Role in the Expanding Middle East Conflict Comes Under Scrutiny
Trump Says He Is ‘Very Disappointed’ in Starmer Over Iran Comments
U.S. Embassy in Riyadh Struck by Drones Amid Escalating Iran Conflict
Starmer Confronts Strategic Test After Drone Strike Near British Base in Cyprus
Rolls-Royce Chief Signals Openness to Germany Joining UK-Led Fighter Jet Programme
UK Stocks Slip as Escalating Iran Conflict Triggers Global Market Selloff
UK Overhauls Asylum System to Make Refugee Status Temporary
Starmer Warns of ‘Reckless’ Iranian Strikes Amid Escalating Regional Tensions
British Base in Cyprus Targeted as Drones Intercepted Amid Expanding Iran Conflict
Starmer Diverges from Trump on Iran Strategy, Rejects ‘Regime Change from the Skies’
U.S. and Israel Intensify Strikes on Iran as Conflict Expands to Lebanon and Gulf States
Violent Pro-Iranian Protesters Storm U.S. Consulate in Karachi
Missile Debris Sparks Fires at Dubai’s Jebel Ali Port Near Palm Jumeirah
Iran Strikes U.S. Fifth Fleet Headquarters in Bahrain Amid Wider Gulf Retaliation
When the State Replaces the Parent: How Gender Policy Is Redefining Custody and Coercion
Bill Clinton Denies Knowing Woman in Hot Tub Photo During Closed-Door Epstein Deposition
Former U.S. President Bill Clinton Testifies on Ties to Jeffrey Epstein Before Congressional Oversight Committee
Dyson Reaches Settlement in Landmark UK Forced Labour Case
Barclays and Jefferies Shares Fall After UK Mortgage Lender Collapse Rekindles Credit Market Concerns
Play Exploring Donald Trump’s Rise to Power by ‘Lehman Trilogy’ Author to Premiere in the UK
Man Arrested After Churchill Statue Defaced in Central London
Keir Starmer Faces Political Setback as Labour Finishes Third in High-Profile By-Election
UK Assisted Dying Bill Set to Fall Short in Parliament as Regional Initiatives Gain Ground
UK Defence Ministry Clarifies Position After Reports of Imminent Helicopter Contract
Independent Left-Wing Plumber Secures Shock Victory as Greens Surge in UK By-Election
Reform UK Refers Alleged ‘Family Voting’ Incidents in By-Election to Police
United Kingdom Temporarily Withdraws Embassy Staff from Iran Amid Heightened Regional Tensions
UK Government Reaches Framework Agreement on Release of Mandelson Vetting Files
UK Police Contracts With Israeli Surveillance Firms Spark Debate Over Ethics and Oversight
United Airlines Passenger Hears Cockpit Conversations After Accessing In-Flight Audio Channel
Spain to Conduct Border Checks on Gibraltar Arrivals Under New Post-Brexit Framework
Engie Shares Jump After $14 Billion Agreement to Acquire UK Power Grid Assets
BNP Paribas Overtakes Goldman Sachs in UK Investment Banking League Tables
Geothermal Project to Power Ten Thousand Homes Marks UK Renewable Energy Milestone
UK Visa Grants Drop Nineteen Percent in 2025 as Migration Controls Tighten
Barclays and Jefferies Among Banks Exposed to Collapse of UK Mortgage Lender MFS
UK Asylum Applications Edge Down in 2025 Despite Rise in Small Boat Crossings
Jefferies Reports Significant Exposure After Collapse of UK Lender MFS
×