LOADING

Type to search

Larry Fink Defends Stakeholder Capitalism

Larry Fink Defends Stakeholder Capitalism

Companies thinking beyond profits isn’t “woke,” the BlackRock founder Larry Fink argued in his latest letter to Wall Street chiefs.

As the founder and C.E.O. of BlackRock, Larry Fink commands the attention of business leaders, thanks to the $10 trillion that his investment firm manages.

After years of pushing corporate America to look beyond profits and embrace a broader social purpose — which has attracted criticism from all corners — he is using his latest annual letter to C.E.O.s to clarify, and defend, his approach.

Stakeholder capitalism “is not woke,’” Fink wrote in the 3,300-word letter. “It is capitalism.”

It was a rebuke to those who say that BlackRock’s new focus on environmental, social and corporate governance concerns, known as E.S.G., is either bowing to anti-business interests or merely marketing. Reducing a company’s carbon footprint, for instance, ensures long-term viability, something investors and executives should care about, he wrote.

He again stressed that E.S.G. was crucial for BlackRock, after writing in 2020 that climate change would be a “defining factor” in its investment assessments. Failing key E.S.G. tests could lead BlackRock to sell its holdings in a company: “Access to capital is not a right,” Fink wrote.

He also rebutted criticism that BlackRock isn’t doing enough. Environmental groups have argued that the firm should divest its holdings in fossil-fuel producers, but he asserted that this alone wouldn’t get the world to net zero, and urged governments to step up their efforts. “Businesses can’t do this alone,” Fink wrote, “and they cannot be the climate police.”

One thing Fink didn’t address is pushback from the political right. Texas, for instance, passed a bill last year that would block the state’s agencies from doing business with financial firms, like BlackRock, if they were to “boycott energy companies.”

(To date, Texas hasn’t cut off BlackRock.) Fink said BlackRock would give individual investors the ability to vote their shares on corporate matters, something Republican lawmakers and others have urged, arguing that the firm has too much influence.

Home » Larry Fink Defends Stakeholder Capitalism
Topics

Related Articles

Leave a Comment

Your email address will not be published. Required fields are marked *

LOADING

Type to search

Blog

Image of official Toronto Climate Week logo nad icon in reverse white text over blue background
PwC Survey Finds Rising Pressure and Value in Corporate Sustainability Reporting
IBM Launches API to Embed Emissions Data into Corporate and Vendor Tools
Founder Group to Build $2.76B Solar and Storage Complex in Sarawak
Germany Delivers Nearly $14 Billion in Climate Finance for 2024
Standard Chartered Backs L&T with $700M Sustainability-Linked Trade Financing
MAS Appoints Abigail Ng as New Chief Sustainability Officer
ESG News WEEK IN REVIeW 21 Sept - 28 sept
OXCCU Secures $28 Million to Scale Carbon-to-Fuel Technology for Aviation
Dutch Startup Brineworks Secures $7.3M to Scale Direct Air Capture for e-Fuels
Becky Park-Romanovsky on Building Toronto Climate Week and Canada’s Climate Future
DHL, Hapag-Lloyd Expand Use of Sustainable Marine Fuels to Cut Supply Chain Emissions
EU Pushes Back Supply Chain Deforestation Rules by One Year
California Names 4,000+ Companies Facing Mandatory Climate Disclosures
Levi Strauss and Schneider Electric launch supply chain renewable energy accelerator in India
EFRAG Maps Digital Tools to Advance SME Sustainability Reporting
Watershed Launches AI-Driven Product Footprints to Tackle Scope 3 Supply Chain Emissions
PRI Awards 2025 Spotlight Responsible Investment Leaders
Frontier Launches Rail-Based Carbon Management Platform for Ethanol Sector
UK Signs Contracts for First Commercial Carbon Capture Projects
","session_id":"ep-sess-1760212622-lLDEBnj3","page_url":"https:\/\/esgnews.com\/larry-fink-defends-stakeholder-capitalism\/","post_id":"7055","tracking_enabled":"1","original_referrer":"","has_embedded_content":""}; /* ]]> */