“Energy security has joined the energy transition as a top global priority,” Fink said. The price of Brent crude, the global benchmark, surged above $139 a barrel in early March as buyers feared supply shocks, though oil has since come down. A shortage of semiconductor chips, in particular, has plagued industries over the past year, from carmakers to tech companies.Īnd now Russia’s assault on Ukraine - followed by swift and punishing Western sanctions and a raft of company exits - has disrupted international export markets. When economies reopened - and demand surged - supply-chain bottlenecks helped push inflation up to levels not seen in decades. The CEO, whose company manages $10 trillion in assets, predicted that Russia’s isolation will “prompt companies and governments worldwide to reevaluate their dependencies and reanalyze their manufacturing and assembly footprints.”īut some countries could benefit from focusing on building up their domestic industries, as companies onshore or “nearshore” their operations, he said.įink said that the coronavirus pandemic had already set these wheels in motion.Įarly in the pandemic, countries struggled to secure desperately needed personal protective equipment made in China. “The Russian invasion of Ukraine has put an end to the globalization we have experienced over the last three decades,” Fink wrote. And any technology or policy that makes energy costs more expensive for the poorest and most vulnerable populations globally will lead to "greater polarization around climate change" and will also be detrimental to progress, he said.Russia’s invasion of Ukraine has ended globalization as we know it, says the head of BlackRock, the world’s largest asset manager.īlackRock CEO Larry Fink told shareholders in a letter on Thursday that Russia’s “decoupling from the global economy” following its assault on Ukraine has caused governments and companies to examine their reliance on other nations. It is not possible or practical to turn the spigot off on natural gas immediately, he said. We need to pass through shades of brown to shades of green," Fink writes. While Fink is clear that the global economy must and will shift to a decarbonized future, he doesn't believe it's going to be a fast shift. In some cases, large incumbent companies "have an advantage in capital, market knowledge, and technical expertise on the global scale required for the disruption ahead," Fink wrote. While start-ups are often where innovation takes hold, legacy companies can and should be working to bring down the price of green solutions as well. The success of Tesla has made Elon Musk the richest person in the world, with a net worth of $266.5 billion, according to Forbes.Ĭurrently, clean energy solutions tend to be more expensive than the greenhouse-gas emitting incumbents, and that's a tough problem, Fink said. "We focus on sustainability not because we're environmentalists, but because we are capitalists and fiduciaries to our clients," Fink wrote.Īs an example, Fink points to the auto industry, which has become almost entirely focused on electric vehicles. More than $4 trillion has been invested in sustainable technology, which is why Fink uses his platform to speak about climate technology - it's where business is going. I believe the decarbonizing of the global economy is going to create the greatest investment opportunity of our lifetime."įink's annual letter is considered a bellwether for future investing trends because of BlackRock's massive size and influence - Friday, BlackRock's quarterly filing disclosed the firm had crossed $10 trillion in assets under management. "Engineers and scientists are working around the clock on how to decarbonize cement, steel, and plastics shipping, trucking, and aviation agriculture, energy, and construction. Personal Loans for 670 Credit Score or Lower Personal Loans for 580 Credit Score or Lower Best Debt Consolidation Loans for Bad Credit
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