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BlackRock’s big move on climate change

In an exclusive interview with Andrew, the money management giant’s chief, Larry Fink, discussed his decision to make climate change a focus of BlackRock’s investment strategy. The shift could reshape how Wall Street invests.

What BlackRock will do, according to Mr. Fink’s latest letter to C.E.O.s:

• Exit certain investments that have a “high sustainability-related risk” — but not all, since fossil fuels remain central to the global economy.

• Start to press corporate managers on their environmental goals, including leaning on companies to adhere to the Paris climate accord’s targets.

• Introduce more funds that avoid stocks related to fossil fuels.

“This is a much more structural, long-term crisis,” Mr. Fink writes in the letter. He said he had come to that conclusion after talking with business leaders and scientists and having BlackRock model the economic effects of climate change.