Shareholders would require satellite-derived climate intelligence to analyse various companies and power their investment decisions objectively.Īsset level emissions monitoring and climate risk data would be crucial in empowering the stakeholders during the transition to a net-zero world, thus, building more trust in the ecosystem.Ģ. Many shareholders are rethinking their relationships with companies, with a growing interest in the corporate governance of public companies.Įmployees across the globe are looking for more from their employers. Most stakeholders – from shareholders to employees to customers, communities, and regulators – now expect companies to play a role in decarbonising the global economy. Sooner or later, companies would require objective, third-party satellite-derived climate intelligence to demonstrate to all stakeholders their sustainability measures in an objective manner as: And the duty to attract that capital in a responsible and sustainable way lies with you.” This year’s letter makes it clear that BlackRock “will invest in the most dynamic companies-whether startups or established players-with the best chances at succeeding over time.” He doubles down on the connection between profit and purpose with this statement: “Access to capital is not a right.

Under this thesis, purpose-driven companies will be the ones that will achieve long-term success for all stakeholders-including shareholders. The core of Fink’s philosophy is that businesses that are connected to stakeholders need to deliver better and more sustainable returns over the long term. This year, we decided to break down Fast Company’s takeaways from Larry Fink’s annual letter and analyse the role of intelligent climate data in powering the global transition to a net-zero world. This is the power of capitalism.” - Larry Fink argues in his 2022 annual letter. “It is not ‘woke.’ It is capitalism, driven by mutually beneficial relationships between you and the employees, customers, suppliers, and communities your company relies on to prosper. Thanks to the $10 trillion under management at BlackRock, when Larry Fink speaks, companies listen! Being the CEO of BlackRock, the world’s largest asset management firm, Larry Fink’s annual letter sets the tone each year for various stakeholders, including investors, companies, and employees. And from then on, transition to a net-zero world, decarbonisation of the global economy and ESG investing have become a focal point of Larry Fink’s annual open letter to the chief executives. Two years ago, Larry Fink wrote that “ climate risk is investment risk” for the first time.

Larry fink blackrock letter to ceos