“It is about being specific and exacting in our communication, understanding our stakeholders, what they care about, what they’re going to want to hear from us, and, again, tying it back to the business. In recent years, the annual letter to CEOs from influential BlackRock chief executive Larry Fink has become closely watched for Finks views on sustainable investing. “Talk about the work that is happening,” Whitney Dailey, executive vice president at Allison+Partners, which advises on ESG communications, said during a panel I spoke on earlier this week. BlackRock, to point to an obvious example, has lost billions in business from the states of Texas and Florida after being targeted by conservative politicians in those states.įor that reason, companies increasingly seem inclined to follow a version of Fink’s approach: pursue climate efforts and explain them in clear language as a business objective. But the reality is that stakeholders-governments, investors, consumers, and employees-are increasingly putting that pressure on companies.ĭespite all this, the ESG backlash does matter, and businesses are terrified about the consequences of speaking out. remains the largest asset manager in the world. And, surely, many companies will avoid thinking about decarbonization until they are forced to do so. After ending 2021 with more than 10 trillion in assets, BlackRock Inc. The backtracking from climate commitments in the oil-and-gas industry as fossil fuel prices have risen is a prime example. In a news release, Moore cited BlackRock's dealings in China and noted 'that BlackRock has urged companies to embrace 'net zero' investment strategies that would harm the coal, oil and natural gas industries.'Ī BlackRock spokesman declined comment on the action.What’s unknown is what fits and starts will occur along the way. On Monday, West Virginia State Treasurer Riley Moore said his agency would no longer use a BlackRock liquidity fund, where it kept $21.8 million as of Jan. read moreĪt the same time the fund manager has faced challenges from conservative U.S. BlackRock CEO Larry Fink in an annual letter said he will not seek divestment of fossil fuel firms and does not see businesses as 'climate police.' The letter will disappoint shareholder activists. It is their money we manage, not our own. When BlackRock chief Larry Fink issued his annual corporate missive to chief executives last January, he promised a huge shake-up at the world’s largest asset manager. Since 1999, we've been a leading provider of financial technology, and our clients turn to us for the solutions they need when planning for their most important goals. Most of the money we manage is for retirement for individuals and pension beneficiaries like teachers, firefighters, doctors, businesspeople, and many others. As a global investment manager and fiduciary to our clients, our purpose at BlackRock is to help everyone experience financial well-being. Under pressure from investors BlackRock cast a more critical set of proxy votes in 2021 such as backing calls for emissions reports or the disclosure of workforce diversity data. BlackRock is a fiduciary to our clients, helping them invest for long-term goals. In Monday's letter, Fink unveiled plans to launch a Center for Stakeholder Capitalism to create a 'forum for research, dialogue, and debate.'įink also said that BlackRock is working to expand an initiative for investors to use technology to cast proxy votes. and European boardrooms, making Fink's annual letter a must-read.

31, BlackRock is one of the most influential voices in U.S. It probably helps that he had a veteran speechwriter who was. After all, Fink heads BlackRock, the largest money manager in the world overseeing over US8 trillion in assets. 'I took this as him trying to stake out a middle ground and find a balance,' Schulp said in an interview. Larry Fink’s annual letter to the finance industry has become a highly-anticipated event for investors in recent years.

Larry fink blackrock sustainability