He also suggests that the transition will not happen overnight, and agrees that traditional fossil fuels like natural gas will play an important role both for power generation and heating in certain regions, as well as for the production of hydrogen. Fink suggests that decarbonising of the global economy is going to “create the greatest investment opportunity of our lifetime”. While the transition poses significant risks for many, Mr. Being a member of the Climate Action 100+, Blackrock believes that every company and every industry will be transformed by the transition to a net zero world. Fink’s letter could not omit the topic of climate change. Those who show humility and stay grounded in their purpose are more likely to build the kind of bond that endures the span of someone’s career.įollowing the COP26, Mr.
Companies that succeed in creating better, more innovative environments for their employees might enjoy lower levels of turnover and higher returns. In his view, employees across the globe are increasingly looking for more from their employer – including more flexibility and more meaningful work. Fink also touched on the impacts of the covid pandemic, predominantly in relation to turnover, employee expectations and changes in pay.
#Blackrock 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. Having said that, 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.” The 2022 letter also argued that in order to prosper, companies must rely on stakeholder (rather than shareholder) capitalism, driven by mutually beneficial relationships between a company and the employees, customers, suppliers, and communities.
Larry Fink’s letter, traditionally, calls for the need for CEOs to have a clear purpose, a coherent strategy, and a long-term view for their organisations. In these letters, investors highlight the themes and issues they believe are impacting companies’ ability to deliver long-term returns and value. In the spirit of annual tradition, the heads of largest global investment funds - Blackrock and State Street Global Advisors (SSGA), addressed listed companies around the world via ‘Letter to CEOs’.
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