BlackRock CEO Says Shell Decarbonization Decision “Not A Solution”
Recasts adding comments, background
MILAN, June 3 (Reuters) – Dutch court ruling last week against Royal Dutch Shell RDSa.L is not the way to solve the global decarbonization problem and risks shifting the problem to private companies, the head of the world’s largest fund manager said on Thursday.
Black rock BLACK.N CEO Larry Fink said the move forcing Shell to deepen its greenhouse gas emission reductions was an example of a general attitude that has failed to address the global problem.
The move, which could trigger legal action against other energy companies, is expected to force Shell to divest assets in order to comply.
Shell said it was disappointed with the decision and planned to appeal.
“This (the decision) does not change the global footprint, it is not a solution,” Fink said at an infrastructure investment conference.
“We do a lot of greenwashing because we aren’t changing the world’s carbon footprint. We can change a company’s carbon footprint.”
Fink said governments were not doing enough to ensure a widespread push towards a carbon neutral future, creating an incentive for companies to offload their hydrocarbon business and cause “huge arbitrage in capital markets.” .
“What worries me is that we are going to put all the pressure on the public (listed) companies and very little pressure on the private side,” he said.
“If we are really sincere that the world will have a net zero carbon (status) in 2050, we cannot move these parts of the economy from public entities to private hands. The net zero world is not changing, but the business is looking better. “
Fink said investors need to work with energy companies to support their green transition and that BlackRock is engaging with those in which it has stakes.
“It’s not about running away from the current oil companies, it’s working with them as they cruise forward, ”said Fink.
BlackRock is the first investor in BP BP.L and last week supported a resolution by shareholders of activist group Follow This asking the energy group to set more ambitious climate targets.
She spoke in favor of Total’s energy transition strategies TOTF.PA and Shell at recent AGMs.
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(Reporting by Valentina Za; Additional reporting by Stephen Jewkes; editing by Barbara Lewis)
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