“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. Watch out: Supremes’ ban on racial favoritism applies to companies tooĮSG is on its way out - now that investors have been forced to wise upīlackRock’s Larry Fink stops using term ‘ESG,’ says it’s become ‘weaponized’īlackRock 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. BlackRock, MSCI probed by lawmakers over investments in blacklisted Chinese companies

Larry fink 2022 letter