![]() ![]() Stocks fall as benchmark US Treasury yield hits 2-year high CEOs need to be asking themselves whether they are creating an environment that helps them compete for talent.” “Turnover drives up expenses, drives down productivity and erodes culture and corporate memory. “Companies not adjusting to this new reality and responding to their workers do so at their own peril,” he said. One more thing: Fink also addressed the changing relationship between employers and employees as the rate of workers quitting their jobs stands at a record high in the United States. But Fink’s stance that companies both need to step up and “cannot be the climate police” is set to continue to draw critics from across the political spectrum. That means the company has huge influence over how billions of dollars are allocated, and can sway other firms as they set policy.īlackRock’s commitment to net-zero emissions by 2050 and socially-minded business priorities has been important. Why it matters: BlackRock is the world’s biggest money manager, ending last year with more than $10 trillion under management. “Any plan that focuses solely on limiting supply and fails to address demand for hydrocarbons will drive up energy prices for those who can least afford it, resulting in greater polarization around climate change and eroding progress,” Fink said. Plus, “governments and companies must ensure that people continue to have access to reliable and affordable energy sources,” he added. “Your company’s purpose is its north star in this tumultuous environment.”įink said that BlackRock does not advocate for widespread divestment from oil and gas companies, since there are firms in the industry making changes that will be essential to achieve net-zero emissions. “It’s never been more essential for CEOs to have a consistent voice, a clear purpose, a coherent strategy and a long-term view,” Fink wrote. He also said it’s crucial that leaders take a stand on issues important to employees and customers. “It is capitalism.”įink said companies need to set short, medium and long-term targets to reduce greenhouse gas emissions because doing so is “critical to the long-term economic interests” of shareholders. “It is not a social or ideological agenda. The push for companies to reassess their priorities is “not about politics,” he said. In his latest letter to CEOs published Tuesday, Fink has issued a response that amounts to: I’m just a capitalist. Others on the left say he isn’t going far enough. Some on the political right claim Fink goes too far in telling businesses to be socially and environmentally conscious. (BLK) CEO Larry Fink, one of the most powerful people in global finance, pens a letter to chief executives that’s required reading for business leaders.įink’s insistence that companies need to disclose more about their climate plans and seriously consider their role in society has helped change what’s expected of Corporate America. ![]()
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