Surprise or Logical Step? – BlackRock and Sustainable Investing

Thilo Tern

In January 2020, news of global significance made headlines: Larry Fink, CEO of BlackRock, urged companies to actively engage in the fight against climate change—otherwise, massive capital reallocations could occur. This warning came from no ordinary source: BlackRock is the world’s largest independent asset manager.

But Has Fink’s Warning Actually Triggered Change?

The answer: only partially. Many companies had already recognized the importance of non-financial metrics and increasingly act in accordance with environmental and social standards.

In Brief: Key Points at a Glance

BlackRock announced potential capital reallocations for companies lacking sustainable alignment.
Companies are increasingly focusing on sustainability and ESG criteria.
Many firms are still unfamiliar with the full scope of external ESG ratings.
Analysts such as MSCI ESG, DVFA ESG, DJSI, Sustainalytics, and others use up to 300 criteria for evaluation.
The Silvester Group advises on strategic ESG communication, analysis, and implementation.

ESG & SRI: From Niche Topics to Global Investment Drivers

It is now clear: Environmental, Social, and Governance (ESG) factors significantly influence decisions made by stakeholders, analysts, and institutional investors. Terms like ESG and Socially Responsible Investment (SRI) are no longer trends—they are integral parts of modern capital market strategies.

Difference Between ESG and SRI

ESG criteria serve as a management tool to assess a company’s long-term economic success while considering environmental and social aspects.
SRI approaches go further, using up to 300 ethical, social, and ecological criteria to enable responsible investments.

The decision of major market participants, such as BlackRock, to invest in ESG underscores a global shift: sustainability is not a “nice to have” but a necessity.

ESG Ratings and Their Growing Importance for Investors

SpSpecialized indices and agencies such as:

Dow Jones Sustainability Index (DJSI)
MSCI ESG
DVFA ESG
ISS-oekom
Sustainalytics

play an increasingly important role in evaluating companies according to ESG criteria. However, the scope and methodology of these ratings can differ significantly.

Transparency Is Mandatory, Not Optional

Today, companies must provide more than just financial metrics. Non-financial information is required, including:

CO₂ footprints
Supply chain sustainability
Social standards in production

These data must be communicated clearly, accessibly, and strategically to relevant stakeholders—otherwise, poor ESG ratings may result even if internal practices are strong.

Capital Market Communication with an ESG Focus: A Real Challenge

Despite professional investor-relations communication, many companies struggle to position themselves accurately in the ESG landscape. Often, they are unaware that they already appear in ESG ratings—and may be undervalued there.

Typical Challenges

Lack of transparency in ESG-relevant data
Insufficient communication with analysts
Discrepancies between reports and ratings

Targeted, ESG-specific capital market communication is essential to convince investors, analysts, and rating agencies alike.

Our Solution: Strategic ESG Communication with the Silvester Group

Our experienced CSR-IR team supports you with:

Analysis of your ESG positioning
Optimization of sustainability reports
Targeted capital market communication
Comprehensive guidance on implementing sustainable measures