Pete Sikora member of New York Communities for Change. In response to the findings of a new report by Majority Action, members of New York Communities for Change (NYCC), Mothers Out Front (MOF), Sunrise Movement NYC, Sierra Club, and 350Brooklyn gathered for a press conference on September 17, 2019 outside BlackRock offices in New York City.

BlackRock announced this week that it will avoid investments in companies that have a high sustainability-related risk, a move the firm's CEO Larry Fink says will fundamentally change how American companies conduct business.

BlackRock, the world's largest money manager with nearly $7 trillion assets under management, will begin to exit investments in coal production, introduce funds that ban fossil-fuel stocks and vote against corporate managers who aren't making progress on fighting climate change.

"Awareness is rapidly changing, and I believe we are on the edge of a fundamental reshaping of finance," Fink wrote in the annual letter to company executives. "The evidence on climate risk is compelling investors to reassess core assumptions about modern finance."

The announcement, which comes as BlackRock grapples with growing global protests against its investing practices, received mixed reactions from climate activists.

While the plan could transform how companies respond to the climate crisis, it's unclear the extent to which BlackRock will pursue the approach and pressure companies to become more sustainable. Many climate activists argue that BlackRock isn't doing enough to combat climate change since it continues to own oil and gas stocks, and warn that it won't be easy for the company to reform its investments.

"BlackRock's announcement today is a major step in the right direction and a testament to the power of public pressure calling for climate action," said Sierra Club campaign representative Ben Cushing.

"But BlackRock will continue to be the world's largest investor in coal, oil and gas," he added. "BlackRock should expand on its commitments and other financial institutions should follow suit."