“Every government, country and shareholder must confront climate change,” wrote Fink, who is CEO and chairman of BlackRock. In Fink’s 2020 missive to CEOs, the language was relatively mild. In that context, Fink’s recent call for shorter-term corporate targets represents a subtle but significant escalation. because it believed the oil company wasn’t moving quickly enough to incorporate clean energy sources. And in May that year, the asset manager caused a stir when it voted to replace three directors at Exxon Mobil Corp. In March 2021, BlackRock also committed to the goal of net zero greenhouse gas emissions by 2050 or earlier. In January 2020, for example, the New York-based money manager signed up to Climate Action 100+, an investor-led initiative that’s pushing companies to move toward net zero emissions by 2050 or sooner. “These targets, and the quality of plans to meet them, are critical to the long-term economic interests of your shareholders.”īlackRock has long been a prominent player in the environmental, social and governance arena. “We are asking companies to set short-, medium-, and long-term targets for greenhouse gas reductions,” Fink wrote. ![]() 17, Fink asked companies to do more than set a long-term net zero target. In his annual letter to the CEOs of companies BlackRock invests in, published on Jan. and The Walt Disney Co., BlackRock’s macroeconomic views command attention in boardrooms across the world. As a major shareholder in companies ranging from Apple Inc. Larry Fink, influential financier and head of the investment firm BlackRock Inc., has just raised the corporate stakes on climate change - and chief executives across a wide swath of sectors are likely to pay heed.īlackRock is the world’s largest asset manager with a staggering $10 trillion in assets under management. Larry Fink’s annual letter is not the guide we wish we had to world peace, prosperity and environmental improvement, but it’s a document worth saluting - we need more business leaders to make it clear that such values are necessary to improve our troubled world.Larry Fink’s call for near-term corporate emissions targets is a subtle but significant escalation of BlackRock using its influence to push for action on climate. Few things will impact capital allocation decisions – and thereby the long-term value of your company – more than how effectively you navigate the global energy transition in the years ahead.”Ħ) Capitalism has the power to shape society and act as a powerful catalyst for change.We need governments to provide clear pathways and a consistent taxonomy for sustainability policy, regulation, and disclosure across markets.” Companies that don’t respond to their employees “do so at their peril.”ĥ) Most stakeholders.expect companies to play a role in decarbonizing the global economy. They will be more likely to support you in difficult moments if they have a clear understanding of your strategy and what is behind it.”Ĥ) Companies that forge strong bonds with their employees see lower levels of turnover and higher returns. And shareholders need to understand the guiding principle driving your vision and mission. Customers want to see and hear what you stand for as they increasingly look to do business with companies that share their values. 1) “Employees are increasingly looking to their employer as the most trusted, competent, and ethical source of information – more so than government, the media, and NGOs.”Ģ) Stakeholders “don’t want to hear us, as CEOs, opine on every issue of the day, but they do need to know where we stand on the societal issues intrinsic to our companies’ long-term success.”ģ) “Employees need to understand and connect with your purpose and when they do, they can be your staunchest advocates.
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