Future Societies - GLO-420 - BOS1

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TEAM 5

GLO-420

Stakeholder Analysis

Dr. Edward S. Cohen

A Large US Investment Firm: BlackRock

BlackRock is one of the biggest investment management firms in the whole world, with

its approximately “$8.7 assets under management (AUM)” in as of the end of 2020. The firm has

a very large portfolio, but relies heavily on investment advice and its administration fees for

revenue. (Reiff, 2021). With its mere size, it holds a huge opportunity and responsibility as a

global corporate citizen to use its power to create a positive change in world’s pressing issues;

one of the most time-critical being the climate change. Fortunately, BlackRock seems to have

given this global crisis enough importance to integrate sustainability policies into its general

business operations. In their words, they “believe that the transition to a net-zero carbon

emissions world will reward” everyone and that is the reason why they have “incorporated

climate risk into [their] portfolio design”. (blackrock.com).

Stakeholder’s Priorities Concerning Climate Change Policy

As a large institutional investor in the US, BlackRock holds the mission to assemble

capital to ensure resilience as well as low carbon transition concerning the changing climate

effects of fellow investors, policymakers, and businesses. BlackRock works to help and support

defining investment practices, corporate behaviors, and public policies that address long-term

opportunities and risks associated with climate variation. It delivers and develops every program

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in collaboration with members strengthening their contributions toward realizing a low carbon

future.

BlackRock aims to capture climate opportunities by focusing on reviewing the corporate

plan and long-term value. It also aims to produce lower carbon emissions than competitors do.

Leaders in BlackRock ensure that their strategies keep sight of finances from low-carbon

prospects. Outside of their organization, BlackRock aims to partner up with the US authority

leaders in regards to climate action. The group members advocate residents to vote for leaders

that take the climate change issue seriously.

As a leading institution, BlackRock encourages legal accountability for the US

government to honor its commitments. Moreover, BlackRock’s stakeholders usually ask reliable

people to spread knowledge about climate-friendly product variations; thus, encouraging the

community to develop climate-friendly nutrition by purchasing organic food. It also urges people

to lessen transportation emissions through advocating for car sharing, bike lanes, public transit,

and flying less. Furthermore, BlackRock’s stakeholders encourage societies to join the clean-

energy budget by looking for renewable energy plans with a yield on investment.

Stakeholders Likely to be BlackRock Allies

The Global Climate Alliance is a European Union initiative to strengthen cooperation and

dialogue concerning climate change among developing countries vulnerable to climate change

(Lucas, 2018). The association aims to deliver financial and technical support to collaborate

nations to integrate climate change into developing budgets and policies. This group aims to

implement plans that may address climate change, promote low-emission strategies, and promote

climate-resilient. It acts as a podium to experience exchange and dialogue among developing

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nations and European Union on practical approaches ––– the purpose is to integrate budgets and

policies for climate change and climate policy with dialogs at regional, national, and global

levels.

On the other hand, the Intergovernmental Panel on Climate Change (IPCC) is a unique

group that produces extensive reports concerning the world’s global climate change. The forum

aims to offer the world vibrant scientific views about the current climate change’s knowledge

state as well as its potential social-economic and environmental impacts. The UN climate body’s

distinctive power lies in its climate assessment reports’ depth and breadth. For instance, experts

worldwide synthesize the current scientific findings concerning potential responses to climate

change and impacts of it, whereby the IPCC releases its assessment reports after five to seven

years.

The two stakeholders’ aims align with BlackRock’s objectives in finding ways to combat

and manage climate change globally. Hence, the two groups are likely to be their allies.

Stakeholders Likely to Oppose BlackRock Priorities

The global oil and natural gas industries have a significant part in the global economy

because they comprise of the world’s primary fuel source. The systems and processes involved in

gas and oil distribution and production are highly capital-intensive, complex, and necessitate a

state-of-the-art technology. The gas and oil industries have much worse climatic impacts than

believed. For instance, carbon emissions from gas and oil in existing mines and fields lead the

world to a warming above 1.5 degrees Celsius. Research also indicates that methane created in

their production has a greenhouse effect and is responsible for global heating.

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Similarly, the global automobile industry entails a wide range of organizations and

companies involved in motor vehicle marketing, design, manufacturing, selling, and development

(Oxenham, 2010). The automobile industry is among the largest manufacturing industries by

revenue worldwide. The sector is a significant economic and industrial force. For instance, it

makes 60 million trucks and cars annually responsible for about half the world’s oil consumption.

Thus, the industry has significantly contributed to the worldwide greenhouse gas emissions. The

transportation sectors result in around 14% of the overall global carbon dioxide emission.

Both of the industries mentioned above work in ways that do not enhance the world’s

climate environment. As a whole and through the companies they are comprised of, they are two

big stakeholders which are likely to oppose BlackRock’s priorities.

Strategy to Support BlackRock Priorities

Having a significant role in improving climate change is crucial for everyone in

BlackRock. Starting up climate conversations with trusted individuals in the society would help

open others’ minds concerning the significance of managing climate change. BlackRock’s

stakeholders will frame their priorities as measures to green their world.

Unlike environmental organizations, scientists, and experts; people trust family members,

loved ones, and peers. So, initially, BlackRock will rely on their own employees’ and their

immediate communities to spread the messages concerning the climate pollution; specifically

caused by the global automobile and the gas & oil industry.

BlackRock’s stakeholders will raise awareness in the amount of carbon emissions that the

global automobile industry. The government has to ensure that the sector has complex strategies

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and solutions to limit emissions by instilling regulatory measures such as emission-based

taxation and carbon dioxide emission limits (Maggioni et al., 2012). Regardless of this positive

step, efforts to manage greenhouse gas emissions do not eliminate climate change risk. Hence,

BlackRock considers collaborating with the natural oil and gas industry if its stakeholders have

justified policies in climate change anticipation. The group should anticipate climate change

measures that are flexible enough to enhance a quick recovery system and to absorb various

climate situations. Raising awareness as a corporate citizen, BlackRock will take a big step in

holding the two big carbon-emitting industries responsible for the damage they are causing.

BlackRock’s stakeholders understand that everyone has their own right to express ideas

that may be wrong or collect depending on the circumstances. Hence, the group will frame its

opponents’ views with the utmost respect but portraying the ideas’ negativities.

References

About Us. BlackRock. (n.d.). https://www.blackrock.com/corporate.

Lucas, C. (2018). Concerning values: what underlies public polarisation about climate

change?. Geographical Research, 56(3), 298-310. https://doi.org/10.1111/1745-

5871.12284

Maggioni, E., Nelson, H., & Mazmanian, D. (2012). Industry Influence in Stakeholder-Driven

State Climate Change Planning Efforts. Policy Studies Journal, 40(2), 234-255.

https://doi.org/10.1111/j.1541-0072.2012.00451.x

Oxenham, M. (2010). Climate change and economic priorities. Veterinary Record, 167(25), 985-

985. https://doi.org/10.1136/vr.c7078

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Reiff, N. (2021, February 27). How BlackRock makes money: Investment and advisory fees.

https://www.investopedia.com/articles/markets/012616/how-blackrock-makes-money.asp.