![]() “ivesting from entire sectors-or simply passing carbon-intensive assets from public markets to private markets-will not get the world to net zero,” he wrote. Activists have criticized BlackRock’s continued investment in coal, oil, and gas in spite of its stated commitment to the net-zero transition. Fink defended BlackRock’s ongoing investment in some oil and gas projects even as other companies and organizations end their exposure to fossil fuels. In his letter, Fink shared that BlackRock would ask companies to share targets for emissions reductions, and disclose their efforts to mitigate risk from climate change.īut BlackRock won’t go as far as to cut out fossil fuels from its portfolio entirely. Keeping employees, customers and suppliers engaged and inspired, says Fink, is necessary to ensure those parities keep delivering profits to shareholders-and thus ensure long-term business profitability.Īccording to Fink, BlackRock cares about sustainability “not because we’re environmentalists, but because we are capitalists and fiduciaries to our clients.” The shift to a decarbonized economy is inevitable, Fink says, and businesses that don’t change their operations will be left behind. state lawmakers have proposed legislation that would bar state investments in companies that use sustainable investment strategies.īut for Fink, paying attention to all stakeholders-not just returns-obsessed shareholders-is key to how a business makes money. Senator Marco Rubio criticized “the woke elites running corporate America” on Fox Business in September, and some U.S. ![]() It’s a contrast to shareholder capitalism, or the idea that a company’s main purpose is to maximize profits and returns to shareholders.įink’s reference to “woke capitalism” is likely a nod to conservative politicians and commentators, who have attacked corporate America’s recent attempts to grapple with climate change, racial inequality and voting rights. Stakeholder capitalism argues that the purpose of companies is to serve the interests of not just shareholders, but the broader community, including employees, suppliers and customers. Instead, stakeholder capitalism “ is capitalism,” and a reason why businesses prosper. It is not a social or ideological agenda. “Stakeholder capitalism is not about politics.
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