World’s Largest Fund Manager to 'Reshape' Investment Portfolio to Consider Climate Crisis, Sustainability
BlackRock, an investment fund that manages nearly $7 trillion, will "reshape" its strategy toward investments that support environmental sustainability, according to a letter to investors from its founder and Chief Executive Larry Fink, as The New York Times reported.
In the letter, Fink wrote, "Climate change has become a defining factor in companies' long-term prospects … But awareness is rapidly changing, and I believe we are on the edge of a fundamental reshaping of finance. The evidence on climate risk is compelling investors to reassess core assumptions about modern finance."
BlackRock's assets include massive investments in fossil fuels, including big oil producers such as BP, Shell and ExxonMobil. The investing giant has drawn the ire of environmentalists by routinely dismissing the climate crisis and voting against shareholder actions to direct corporate boards to address the growing climate emergency, as The Guardian reported.
Activists hailed the new declaration that the climate crisis will steer BlackRock's future investments. Bill McKibben, the founder of 350.org, which campaigns for divesting from fossil fuels, wrote on Twitter, "Biggest news in a long time. After a ton of pressure, Blackrock — which owns more fossil fuel stock than anyone on earth — announces it will put 'climate change at the center of its investment strategy.' A huge — if by no means final — win for activists!"
The ton of pressure McKibben referred to reached a fever pitch after BlackRock ranked amongst one of the companies with the worst voting records on climate issues. Last month, British hedge fund manager Christopher Hohn said it was appalling that BlackRock did not require companies to disclose sustainability efforts. Activists had staged protests outside BlackRock's office, and members of congress wrote to Fink to urge more climate-related investing, as The New York Times reported. Last month, in an interview with the Financial Times, former Vice President Al Gore asked if passive managers like BlackRock's would like "to continue to finance the destruction of human civilization, or not?"
"BlackRock remains waist-deep in fossil fuel investments and the world's top backer of companies that destroy the Amazon rainforest and ignore the rights of indigenous people," said Extinction Rebellion, as The Guardian reported.
BlackRock's plans to address the climate crisis will start with abandoning investments that "present a high sustainability-related risk," like coal producers. Fink hopes that BlackRock's lead will encourage every company, not just energy companies, to assess their carbon footprint, as The New York Times reported. BlackRock will also ask the companies it invests in to disclose plans for helping the world adhere to the Paris agreement to keep warming below 2 degrees Celsius above pre-industrial times, according to CNN.
The largest impact may be if BlackRock's decision is a watershed moment that triggers a conversation amongst financiers and policymakers about the climate crisis. It will also put pressure on other large financial players to articulate a clear sustainability strategy, as The New York Times reported.
Not only is changing an investment strategy to support sustainability good for combating the climate crisis, but it can also be profitable. As The New York Times pointed out, "Had Mr. Fink moved a decade ago to pull BlackRock's funds out of companies that contribute to climate change, his clients would have been well served. In the past 10 years, through Friday, companies in the S&P 500 energy sector had gained just 2 percent in total. In the same period, the broader S&P 500 nearly tripled."
BlackRock will also join Climate Action 100+, which bills itself as an investor initiative to to ensure the world's largest corporate greenhouse gas emitters take necessary action on climate change.
While BlackRock's intention to join was welcomed by activists, anger and resentment lingers over the firm's past actions.
"Joining Climate Action 100+ is just a first step in the right direction for BlackRock; it must also respond to the fact that it is the world's biggest investor in deforestation," said Moira Birss, finance campaign director for Amazon Watch, in a press release. "The Amazon fires last fall and the wildfires in Australia today show the immense risk to the climate, forests, and indigenous peoples that deforestation-risk commodities pose. BlackRock must make its engagement with companies public and transparent with clear policies, deadlines, and ambitious timelines for shifting capital out of the worst offenders if they won't change."
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By Jason Bruck
Human actions have taken a steep toll on whales and dolphins. Some studies estimate that small whale abundance, which includes dolphins, has fallen 87% since 1980 and thousands of whales die from rope entanglement annually. But humans also cause less obvious harm. Researchers have found changes in the stress levels, reproductive health and respiratory health of these animals, but this valuable data is extremely hard to collect.
Researchers work with trained dolphins to learn more about their sensory abilities, seen here testing a dolphin's hearing. Jason Bruck / CC BY-ND
A Lot to Learn From Hormones<p>When sampling the blow, we are looking for hormones in mucus as these can be used to gauge psychological and physiological health. We are specifically interested in <a href="https://dx.doi.org/10.1371%2Fjournal.pone.0114062" target="_blank">hormones like cortisol</a> and <a href="https://doi.org/10.1016/j.ygcen.2018.04.003" target="_blank">progesterone</a>, which indicate stress levels and reproductive ability respectively, but can also help determine overall health.</p><p>Additionally, blow samples can detect <a href="https://dx.doi.org/10.1128%2FmSystems.00119-17" target="_blank">respiratory pathogens</a> in the lungs or nasal passages - blowholes evolved from noses after all.</p><p>This health analysis is especially important in areas with oil spills as the chemicals can cause hormonal problems that harm <a href="https://www.carmmha.org/investigating-how-oil-spills-affect-dolphins-and-whales/" target="_blank">development, metabolism and reproduction</a> in dolphins.</p><p>Hormone samples can provide scientists with valuable data, but collecting them from intelligent and unpredictable animals is challenging.</p>
Cetacean Collaborators<p>To build a drone that can stealthily collect spray from moving dolphins, we needed more data on their eyesight and hearing, and this is data that couldn't be collected in the wild nor simulated in a lab.</p><p>We worked with dolphins at facilities like Dolphin Quest in Bermuda, which provides guests opportunities to learn about dolphins while allowing <a href="https://dolphinquest.com/about-us/our-story/" target="_blank">scientists access to animals for noninvasive research</a>. Here the dolphins can swim away if they choose not to work with us, so we had to design the study like a game; the way a kindergarten teacher entertains a class. If the dolphins aren't interested, we don't get to do the science.</p><p>Over the course of hundreds of sessions, we sought to answer two questions: What can dolphins hear and what can they see around their heads?</p><p>To test dolphin hearing, we set up microphones and cameras to record dolphin behavior as we played drone noise in the air. We analyzed the responses to each noise – such as how many dolphins looked at the speaker – and used these as a proxy for their ability to hear the sounds.</p>
<span style="display:block;position:relative;padding-top:56.25%;" class="rm-shortcode" data-rm-shortcode-id="5f31daf07a652b8d64a093b993ee4e96"><iframe lazy-loadable="true" src="https://www.youtube.com/embed/UjmQeH3vXHI?rel=0" width="100%" height="auto" frameborder="0" scrolling="no" style="position:absolute;top:0;left:0;width:100%;height:100%;"></iframe></span>
Robodolphin doesn't look like a real dolphin, but it doesn't need to in order to train our drone pilots. C.J. Barton / Oklahoma State University / CC BY-ND<p>To build robodolphin, we worked with dolphins trained to "chuff" or sneeze on command to measure spray characteristics. We used high-speed photography to see the dolphins' breath as it moved through the air. Then we conducted high resolution CT scans of a dolphin head and 3D-printed a replica of a nasal passage.</p><p>Now, we have a complete robodolphin and are tweaking its sprays to be nearly identical to the real thing. This will allow us to determine how close we need to get to collect the samples, and therefore, how quiet our drone needs to be.</p>
The replica dolphin blowhole was designed from a scan of a real blowhole passage, and the spray it produces closely matches the real thing. Alvin Ngo, Mitch Ford and CJ Barton / Oklahoma State University / CC BY-ND
A Bit of Practice, Then Into the Wild<p>In the next few months, we will test flights over robodolphin with existing drones to determine the timing and strategy for collection. From there, we will fabricate a low-noise drone that can fly fast enough and with sufficient maneuverability to capture samples from wild dolphins. Like a video game, we will use the visual field data to develop approach trajectories to stay in the visual blindspots.</p><p>We plan to test our drones on a truck-mounted robodolphin moving down a runway, then using a boat to simulate realistic conditions. The next steps will involve ocean testing with dolphins trained for open ocean swimming. These tests will determine if our devices can catch and hold the hormones as the drone flies back to a researcher's boat.</p><p>Finally, we will deploy the system to collect data on wild dolphins. Our first goal is to test resident dolphins – animals that live on the coasts and deal directly with boat and oil industry noise – which will allow us to learn more about stress resulting from human impacts.</p><p>Those samples are a way off, but if all goes well we will have a specially built drone capable of flying long distances and capturing samples undetected in a few years. The samples collected will allow researchers to do better science with impact on the animals they study.</p>
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Billions worth of valuable metals such as gold, silver and copper were dumped or burned last year as electronic waste produced globally jumped to a record 53.6 million tons (Mt), or 7.3 kilogram per person, a UN report showed on Thursday.
Environmental and Health Hazard<p>Experts say e-waste, which is now the world's fastest-growing domestic waste stream, poses serious environmental and health risks.</p><p>Simply throwing away electronic items without ensuring they get properly recycled leads to the loss of key materials such as iron, copper and gold, which can otherwise be recovered and used as primary raw materials to make new equipment, thereby reducing greenhouse gas emissions from extraction and refinement of raw materials.</p><p>Refrigerants found in electronic equipment such as fridge and air conditioners also contribute to global warming. A total of 98 Mt of CO2-equivalents, or about 0.3% of global energy-related emissions, were released into the atmosphere in 2019 from discarded refrigerators and ACs that were not recycled properly, the report said.</p><p>E-waste contains several toxic additives or hazardous substances, such as mercury and brominated flame retardants (BFR), and simply burning it or throwing it away could lead to serious health issues. Several studies have linked unregulated recycling of e-waste to adverse birth outcomes like stillbirth and premature birth, damages to the human brain or nervous system and in some cases hearing loss and heart troubles.</p><p>"Informal and improper e-waste recycling is a major emerging hazard silently affecting our health and that of future generations. One in four children are dying from avoidable environmental exposures," said Maria Neira, director of the Environment, Climate Change and Health Department at the World Health Organization. "One in four children could be saved, if we take action to protect their health and ensure a safe environment."</p>
Europe Leads the Way<p>While most of the e-waste was generated in Asia (24.9 Mt) in 2019, Europe led the charts on a per person basis with 16.2 kg per capita, the report said.</p><p>But the continent also recorded the <a href="https://www.dw.com/en/the-eu-declares-war-on-e-waste/a-51108790" target="_blank">highest documented formal e-waste collection and recycling</a> rate at 42.5%, still below its target of 65%. Europe was well ahead of the others on this front. Asia ranked second with 11.7%.</p><p>The authors said while more that 70% of the world's population was covered by some form of e-waste policy or laws, not much was being done toward implementation and enforcement of the regulations to encourage the take-up of a collection and recycling infrastructure due to lack of investment and political motivation.</p><p>"You have to think about new economic systems," said Kühr.</p><p>One approach could be that consumers no longer buy the products, but only the service they offer. The device would remain the property of the maker, who would then have an interest in offering his customers the best service and the necessary equipment. The maker would also be interested in designing his products in such a way that they are easier to repair and easier to recycle, Kühr said.</p>
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