In the latest newsletter, Fink told CEOs that they need to look beyond profit and have a clear understanding of their social mission for their business to be successful.
He was also clear that the push for climate policy was about making money rather than just being “woke.”
“Stakeholder capitalism does not have to do with politics. It’s not a political and ideological plan. It’s not “woke.”,” he wrote.
“We focus on sustainability not because we’re environmentalists, but because we are capitalists and fiduciaries to our clients.”
He said: “Every company and industry will change as we transition towards a net-zero environment. Will you be the one to lead, or are you going to be led?”
In contrast, The New York Times reported that critics have said Fink and BlackRock aren’t pushing companies enough to make them greener.
A collection of not-for-profit profits and activists have gathered to create BlackRock’s Big Problem, which accuses BlackRock of not excluding considerable environmental pollution from investing in its funds even when it comes to environmentally socio-economic, and governance (ESG) targeted products.
The criticism is legitimate; Fink reiterated in his letter that BlackRock is not pursuing divestment of oil and gas firms as a way to reduce its carbon footprint. Instead, Fink argued: “Divesting from entire sectors – or simply passing carbon-intensive assets from public markets to private markets – will not get the world net zero.”
However, he wrote for the benefit of ESG policies and said they shouldn’t be viewed as a fad in business, but instead, they should be recognized as a permanent part of the business world.
The entrepreneur said that anyone who decides not to adopt this new thinking approach runs the risk of losing out to younger competitors.
“The next 1,000 unicorns won’t be search engines or social media companies,” said the man. Stated.
“They’ll be sustainable, scalable innovators – startups that help the world decarbonize and make the energy transition affordable for all consumers.”
Business leaders in the past decade have read Fink’s annual newsletter. The author has been a prominent voice constantly pushing CEOs to look beyond profit to their social responsibilities.