BlackRock: Endorse A National Price on Carbon

BlackRock

Tell BlackRock to endorse the bi-partisan Energy Innovation and Carbon Dividend Act. [1]

Climate change is detrimental to global economic prosperity. According to Citigroup, GDP lost to climate change may reach $44 T by 2060. [2] Poorer air quality will harm public health, extreme weather will damage infrastructure, and heat stress will decrease agricultural production. [3]

Since BlackRock owns stock in all parts of the economy, the long-term success of the world economy is crucial to BlackRock’s financial performance. This means that BlackRock has an enormous stake in preventing climate change.

Economists and the Intergovernmental Panel on Climate Change agree that pricing carbon is a concrete and cost-effective way to slow climate change. [4] The Energy Innovation and Carbon Dividend Act has been introduced in both Houses of Congress, and will help bring climate change under control by enacting a carbon fee and dividend into law. In addition to reducing emissions by 40%, the bill is projected to create 2.1 million additional jobs over the next decade. [5]

BlackRock already recognizes the business risks of climate change, saying that “investors can no longer ignore climate change” [6]. Many of the companies you invest in have already expressed support for similar carbon fee and dividend proposals, including Gap Inc., General Motors, Schneider Electric, IKEA, and Unilever. Now BlackRock needs to take action to support policy that protects long-term shareholder value by fighting climate change.

We ask BlackRock to endorse the Energy Innovation and Carbon Dividend Act [7] to help move the US towards cost-effective climate solutions.

[1] https://energyinnovationact.org

[2] https://ir.citi.com/hsq32Jl1m4aIzicMqH8sBkPnbsqfnwy4Jgb1J2kIPYWIw5eM8yD3FY9VbGpK%2Baax

[3] https://nca2018.globalchange.gov

[4] https://www.businessclimateleaders.org/carbon-pricing-supporters

[5] https://citizensclimatelobby.org/energy-innovation-and-carbon-dividend-act

[6] https://www.blackrock.com/corporate/literature/whitepaper/bii-climate-change-2016-us.pdf

[7] https://energyinnovationact.org/endorse