#Larry fink ceo letter full#

That requires understanding how companies are adjusting their businesses for the massive changes the economy is undergoing. We focus on sustainability not because we’re environmentalists, but because we are capitalists and fiduciaries to our clients. Actions and ambitions towards decarbonization have also increased. Sustainable investments have now reached $4 trillion. And in that short period, we have seen a tectonic shift of capital. It’s been two years since I wrote that climate risk is investment risk. 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. “Most stakeholders – from shareholders, to employees, to customers, to communities, and regulators – now expect companies to play a role in decarbonizing the global economy. Make no mistake, the fair pursuit of profit is still what animates markets and long-term profitability is the measure by which markets will ultimately determine your company’s success.”Ībout sustainability, Fink wrote the following: It is through effective stakeholder capitalism that capital is efficiently allocated, companies achieve durable profitability, and value is created and sustained over the long-term.

#Larry fink ceo letter full#

In today’s globally interconnected world, a company must create value for and be valued by its full range of stakeholders in order to deliver long-term value for its shareholders. 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. It is not a social or ideological agenda. Stakeholder capitalism is not about politics. This is the foundation of stakeholder capitalism. Time and again, what they all share is that they have a clear sense of purpose consistent values and, crucially, they recognize the importance of engaging with and delivering for their key stakeholders. “Over the past three decades, I’ve had the opportunity to talk with countless CEOs and to learn what distinguishes truly great companies. About stakeholders, he wrote the following: The CEO of the world’s largest asset management firm -now with officially more than $10 trillion in client assets under management -argued that sustainability is a financial, not political, value and that, in his view, stakeholder capitalism is capitalism at its finest. This year’s letter was adamant about the importance of ESG, stakeholder capitalism, and sustainable investing but was also something of a response to critics. Last week, BlackRock CEO Larry Fink’s wrote his annual letter to fellow CEOs. ESG Developments This Week On Wall Street and in the private sector Economy and Society is Ballotpedia’s weekly review of the developments in corporate activism corporate political engagement and the Environmental, Social, and Corporate Governance (ESG) trends and events that characterize the growing intersection between business and politics.