BlackRock founder Larry Fink released his annual letter to chief executives this week, and his aggressive stand on climate change and sea level rise rocked the financial world.
BlackRock, the world’s largest and most powerful investor with over $6.84 trillion of assets under management, recently came under criticism that it wasn’t doing enough to fight climate change. Fink’s letter told the executives that climate change has to be considered when a company’s long-term prospects are being evaluated for investment purposes. He said the company is already undertaking initiatives that will promote climate sustainability while selling investments in some thermal coal producers. Burning coal and other fossil fuels is a major contributor to the greenhouse gases that are driving global warming and sea level rise.
Fink went on to say: “We don’t yet know which predictions about the climate will be most accurate, nor what effects we have failed to consider. But there is no denying the direction we are heading. Every government, company and shareholder must confront climate change.“
Fink also posed a question regarding sea level rise flooding. “What will happen to the 30-year mortgage – a key building block of finance – if lenders can’t estimate the impact of climate risk over a such a long timeline, and if there is no viable market for flood or fire insurance in impacted areas?” The answer is obvious: The coastal real estate market will crater.
The message to buyers, sellers, owners and real estate agents in coastal areas is now is the time to consider climate change and sea level rise flooding – on many levels – to make informed decisions regarding real estate purchases and investments. The days of climate change denialism are over. It’s time to follow Fink’s lead and do due diligence to protect your own financial future.
“7 Sea Level Rise Real Estate Questions” can help you get started.
Sea Level Rise Flooding Information for Buyers, Sellers, Owners, and Real Estate Agents 