Climate change poses two distinct risks for investors, and a special one for fund managers. The pledge last week by Larry Fink, CEO of fund giant BlackRock Inc., to push clients toward environmental, social and governance investing highlights another risk: that markets are shifting from harnessing the wisdom of crowds to the wisdom of a handful of powerful money-management executives.

Leave the pros and cons of ESG aside for a moment. Whatever you think of Mr. Fink’s view, his letter highlights the power he wields over the…

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