Later that month, BlackRock chief executive Larry Fink created buzz with his 2021 Letter to CEOs. His 2021 letter builds on last year’s message, highlighting climate change, capital management, long-term strategy and purpose. To reach “net zero” as defined by the IPCC, avoidance offsets are insufficient and carbon removals — either from within the value chain boundary or purchased as credits — must be included. Larry Fink, CEO and Chairman of BlackRock, the world’s largest investment management firm, has sent out an annual letter to CEOs of the companies that BlackRock invests in on behalf of its clients since 2012. While it seems there is a new corporate “net zero” target announcement each week, some only include Scope 1 and 2 emissions, while others add specific Scope 3 emissions categories (e.g., employee business travel) or, in some cases, full value chain emissions, across Scope 1, 2 and 3 emissions. Key Insights From BlackRock's Annual Letter to CEOs. But this definition is incompatible with the IPCC’s definition of net zero: “anthropogenic emissions of greenhouse gases to the atmosphere are balanced by anthropogenic removals over a specified period.” This is because many carbon offsets are issued based on the emissions avoided as a result of the project funded by the credit purchase, such as a new renewable energy project that reduces the need for higher-carbon generation options. This is a pivotal moment, not only for BlackRock, but for Wall Street altogether. 3. Momentum continues to build, and in 2021 it will accelerate – with dramatic implications for the global economy. Stay up-to-date with a weekly snapshot of the latest developments in the ESG space. BlackRock is a fiduciary to our clients, helping them invest for long-term goals. Greater clarity and consistent guidance are needed on these questions as organizations rush to align their ambition with net zero. A quick lookup for interviews with John Chen would prove that he explicitly avoids these terms as they do not define nor matter to the products/revenue of BlackBerry. So, then, how can organizations authentically address systemic injustices? WSP is a global business providing management and consultancy services to the built and natural environments. The letters are seen as a bellwether of the expectations that the finance industry – and wider society – has on business and its role in society. Frontline workers do not have the option to do their jobs from home. To get started, visit our website or contact our team at advancingsustainability@wsp.com. Our 2021 stewardship expectations (pdf): BlackRock follows up on its previous letter, adding operational details to its climate plans. When it comes to removal offsets, inclusion of Scope 3 and the ambition of reduction pathways, the question is not “whether”, but “how much”. And many of them are mothers. Standards are emerging, but carbon removal credits would certify that an equivalent quantity of CO2 has been removed from the atmosphere and sequestered for a specific amount of time, either through nature-based solutions such as restorative agriculture, or technology-based solutions such as direct air capture. Finally, in December, the framework- and standard-setting institutions consortium published a white paper illustrating how their current frameworks, standards and platforms, along with the TCFD recommendations, can be used together in the progression toward global standards focused on sustainability’s impact on enterprise value. Larry Fink's Letter to CEOs | BlackRock 1/20/19, 11:30 PM https://www.blackrock.com/corporate/investor-relations/larry-fink-ceo-letter Page 2 of 5 From our perspective, which is born out of our work with clients, Fink should use his bully pulpit to sharply focus on identifying, acknowledging and addressing social injustices. 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