BlackRock has been pushing its sustainability credentials forward this week. With almost $7.5 trillion in AuM, its financial firepower is enormous and dwarfs that of sovereign wealth funds.

The world’s biggest asset management house, BlackRock, got even larger last year. The US-listed firm reported total assets under management of more than $7.429 trillion as at December 31, 2019, against $5.976 trillion a year before. As well as rising market levels, the colossal figure was lifted by net inflows of $438.736 billion in 2019.

Revenues in the fourth quarter of last year came in at $3.977 billion, rising by 16 per cent from the same quarter a year ago. The firm made an operating margin of 38.7 per cent, widening from 36.43 per cent a year before. Net income surged by 40 per cent year-on-year to $1.3 billion in Q4, BlackRock said in a statement today. 

“Full-year flows were positive across product type and investment style, including records in cash, factors and illiquid alternatives. Continued investment in Aladdin, including the acquisition of eFront, drove record growth in technology services revenue to almost $1 billion for the year,” Larry Fink, chairman and CEO, said. 

Fink referred to BlackRock’s recent move to put its financial weight behind initiatives to tackle climate change. The firm has joined Climate Action 100+. It has been criticized in the past for not doing enough to push for change. Given its size, BlackRock is larger than any sovereign wealth fund run by a state government.

“The recently announced acceleration of our sustainability efforts is yet another example of BlackRock’s commitment to helping clients build more resilient portfolios and navigate investment opportunities and risks. We begin 2020 well positioned to continue fulfilling our purpose and leading the evolution of the asset management industry,” Fink said.

This week Fink pushed out a letter to clients putting forward his firm’s commitment on sustainability issues, showing how taking such a stance has become almost compulsory, rather than a fringe concern as in the past.