Larry Fink, founder and CEO of Blackrock, the world’s largest investment firm, announced in his annual letter that BlackRock will make investment decisions with environmental sustainability as its core goal.

“Every government, company, and shareholder must confront climate change.”

–Larry Fink, founder and CEO of Blackrock

The letter was written through the eyes of a capitalist and not an environmentalist. Climate change will require a huge energy transition. There will be a long-term trend that will have an impact on the valuation of companies and industries. The letter seeks a focus on transparency and redistribution of capital to prepare for the transition.