The limits of BlackRock's new climate strategy

• It targets companies that generate more than 25% of their revenue from thermal coal.
• But Bloomberg points out that "large, diversified miners — which also rank among the largest coal producers — won’t be affected."
• Coal revenue for mining heavyweights Glencore, Anglo American and BHP Group are all under the 25% threshold, Bloomberg notes.

But, but, but: A new update from the Institute for Energy Economics and Financial Analysis says BlackRock's coal policy is nonetheless consequential.

• They note it would likely capture firms including China Shenhua, China National Coal, Peabody Energy, Arch Coal Inc., Contura Energy, Adani Enterprises and many others.
• And, they note, BlackRock's vow to "closely scrutinize" companies that use lots of thermal coal could bring divestment from big power companies like Duke Energy.

The big picture: Most of the trillions of dollars BlackRock manages for clients are in passive funds, which means the company isn't directly picking the investments.

• Nonetheless, BlackRock's strategy does address passive investment vehicles. The firm is expanding offerings of sustainability-focused exchange-traded funds.
• Part of that plan would allow clients to select funds that do not include certain companies and sectors, including a "fossil fuel screen."

The bottom line: Environmentalists generally applauded BlackRock's moves but also acknowledged their limits.

• As the NYT notes, "Because of its sheer size, BlackRock will remain one of the world’s largest investors in fossil-fuel companies."

Go deeper: BlackRock vows focus on climate change