Bloomberg, which provides financial news and data, launched an online news platform specializing in climate change called ‘Bloomberg Green’ last year. Bloomberg Green recently introduced an interesting piece of data. It selected 15 ‘climate billionaires’ by citing the Bloomberg Billionaires Index.
The honorable first place was awarded to Elon Musk, CEO of the electric vehicle company Tesla. The comparison figure was ‘oil king’ John Rockefeller. Bloomberg Green explained, "In the history of the oil industrial revolution, Rockefeller became the richest person, but a century and a half later, Musk is eyeing the same position by encroaching on Rockefeller’s main product."
Musk’s assets amount to $199.2 billion, having increased by a staggering 622% over the past year. This is similar to the scale of Rockefeller’s Standard Oil assets when adjusted for inflation. His wealth has rapidly grown recently as the eco-friendly industry rises in response to climate change. Conversely, the oil industry is in decline. A recent Wall Street Journal (WSJ) report that ExxonMobil and Chevron, which were spun off from Standard Oil, discussed a merger last year clearly illustrates the decline of the oil industry.
As the importance of responding to climate change grows, the global investment landscape is also changing. Larry Fink, chairman of BlackRock, the world’s largest asset management company, recently demanded in his annual letter to CEOs worldwide that each company disclose plans compatible with Net Zero. Net Zero means a state where the total greenhouse gas emissions and absorption balance out to zero net emissions. BlackRock manages assets worth $7.8 trillion (about 8,500 trillion KRW) and invests in Korean companies such as Samsung Electronics and Hyundai Motor Company. Our companies cannot ignore BlackRock’s warning. Especially considering that many BlackRock alumni are positioned in the economic team of the Joe Biden administration, Fink’s remarks carry even greater weight.
Now, climate response is not an option but a survival necessity for companies. This poses a threat to Korean companies with a high manufacturing ratio. It is somewhat fortunate that Korean companies are accelerating their response, with more joining RE100 (a campaign to cover 100% of corporate electricity use with renewable energy). However, we need to carefully consider how much we are benefiting from the rapidly growing global eco-friendly industry and whether we are seizing opportunities well. The fact that, except for three, all of the 15 climate billionaires mentioned earlier are Chinese individuals (or companies) reflects our reality.
Following Musk’s Tesla, the second place was taken by the founders of China’s largest electric vehicle battery company CATL (including Chairman Zeng Yuqun and three others), and third place was occupied by three people including Li Zhenguo of LONGi Silicon, the world’s largest solar panel company. Next in the ranking are the CEO of Chinese electric vehicle manufacturer BYD and the CEO of battery manufacturer Eve Energy. It is no paradox that China, the world’s largest carbon emitter, is moving fastest in the decarbonization industry and attracting money from around the globe.
On the other hand, South Korea, which has emphasized renewable energy such as solar power for years, unfortunately did not have anyone ranked among the top 15 climate billionaires. The government is busy promoting the Green New Deal every day, but how substantial it is remains questionable. Both the government and companies need to make meticulous efforts to ensure that we properly seize the newly opened opportunity of ‘responding to climate change.’
Hee-jong Kang, International Chief mindle@
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