BlackRock CEO Larry Fink On ESG Investing

Larry Fink, CEO of the world's largest asset manager BlackRock, Inc. BLK, released his annual letter to CEOss Tuesday, with a focus on climate change.

"We expect companies to disclose a plan for their business model will be compatible with a net zero [carbon footprint] economy," Fink said. 

With nearly $9 trillion under management by BlackRock, Larry Fink said that if a company wants to be the most profitable in its industry, it needs to move forward with ESG strategies and move more money into the space.

If a company wants to have a high performing stock over an extended period of time, it needs to update its ESG strategies and move more into renewable sources of energy.

Over the last year, billions of dollars has been moved into the space, with companies such as Tesla TSLA leading the charge.

"I believe that as long as money keeps moving into the space we will not see a bubble, a few companies might have a bubble ... we need to invest upwards of $50 trillion in order to see real changes." 

BlackRock has already committed to a carbon-free business model and highly urges the CEOs of all major companies to steer their companies in the same direction, he said.