![]() Over the past three decades, I’ve had the opportunity to talk with countless CEOs and to learn what distinguishes truly great companies. When my partners and I founded BlackRock as a startup 34 years ago, I had no experience running a company. I write these letters as a fiduciary for our clients who entrust us to manage their assets – to highlight the themes that I believe are vital to driving durable long-term returns and to helping them reach their goals. That is why, for the past decade, I have written to you, as CEOs and Chairs of the companies our clients are invested in. It is a long-term endeavor, and we take a long-term approach. The financial security we seek to help our clients achieve is not created overnight. The majority of our clients are investing to finance retirement. © 2023 NYP Holdings, Inc.Each year I make it a priority to write to you on behalf of BlackRock’s clients, who are shareholders in your company. ![]() And wages for those on low and middle incomes barely grew,” Fink wrote. Mental health was rarely discussed in the workplace. “Companies expected workers to come to the office five days a week. Executives “face a profoundly different paradigm” while dealing with employees as quit rates surge during the “Great Resignation,” according to the BlackRock CEO. “We do have some clients who choose to divest their assets while other clients reject that approach.”įink’s letter also included his view on pandemic-driven changes to the global economy, with a particularly focus on the labor market. “BlackRock does not pursue divestment from oil and gas companies as a policy,” Fink said. Though Fink did not directly address a specific critic, he noted that businesses should not be the “climate police” or divest from entire sectors. Last year, Texas state lawmakers passed a bill that would bar state agencies from investing public funds with companies such as BlackRock that “boycott energy companies.” In a release, Moore argued BlackRock’s net-zero energy policy would be harmful to the state’s economy and hypocritical given Fink’s decision to pour “billions in new capital into China” despite human rights violations. In this environment, facts themselves are frequently in dispute, but businesses have an opportunity to lead.”īlackRock’s Larry Fink urges companies to plan for climate changeĮarlier this week, West Virginia Treasurer Riley Moore said the state would cut ties with BlackRock’s investment fund. “They may hijack your brand to advance their own agendas. “Political activists, or the media, may politicize things your company does,” he wrote. “That requires understanding how companies are adjusting their businesses for the massive changes the economy is undergoing.”įink asserted that companies shouldn’t cave to political pressure while considering policy. “We focus on sustainability not because we’re environmentalists, but because we are capitalists and fiduciaries to our clients,” Fink added in his letter. Karla Coté/SOPA Images/Shutters Larry Frank’s insistence that companies work to cut carbon emissions to zero by 2050 is a source of particular concern among conservatives – especially in states with energy-driven economies. Protesters with placards expressing their opinion are seen in front of BlackRock building, during the demonstration over climate change as well as treatment to their workers. ![]() Under Fink’s leadership, the firm has increasingly urged major companies to embrace environmental, social and governance standards as part of their business models.įink’s insistence that companies work to cut carbon emissions to zero by 2050 is a source of particular concern among conservatives – especially in states with energy-driven economies. It is not ‘woke,’” Fink wrote in the letter. “It is capitalism, driven by mutually beneficial relationships between you and the employees, customers, suppliers, and communities your company relies on to prosper. This is the power of capitalism.”īlackRock is the world’s largest investment firm, managing assets worth more than $10 trillion as of this month. It is not a social or ideological agenda. ![]() “Stakeholder capitalism is not about politics. BlackRock has faced backlash from conservatives who say the firm’s consideration of climate change in its investment strategy is a politically motivated effort to build goodwill. It’s only a matter of time until the ESG movement will R.I.P.īlackRock, MSCI probed by lawmakers over investments in blacklisted Chinese companiesīlackRock CEO Larry Fink pushed back against criticism of the asset management firm’s embrace of stakeholder capitalism, arguing the practice is not “woke” but a necessity for long-term success.įink defended his stance in his widely-read annual letter to CEOs. Vanguard joins BlackRock in rejecting more ESG proposals from shareholders How everyday investors may soon vote away ESG
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