“Meanwhile, BlackRock Inc., the world’s largest asset manager overseeing $5.1 trillion, told portfolio companies in the energy and real estate sectors that it expects a company’s “board to have demonstrable fluency in how climate risk affects the business” if the organization wants BlackRock’s continued investment.
“Boards have a legal fiduciary duty to shareholders to manage risk in the operations of the corporation they oversee. To manage that risk, they must understand it. So having a board competent enough to understand the various opportunities and risks associated with climate change is key.
“. . . here are some strategies that experts suggest embracing to help boards of directors more prepared to gauge climate risks and opportunities.”