Blackrock CEO Larry Fink continues to call on the CEOs of its portfolio companies to engage and inspire stakeholders to create sustainable returns. That includes recognizing the profound and lasting changes in the world of work and what employees need to be productive and loyal. He expects them “to play a role in decarbonizing the global economy,” reiterating that “climate risk is investment risk.” It is not enough to wait to respond to demand from regulators, consumers, and investors. “Every company and every industry will be transformed by the transition to a net zero world. The question is, will you lead, or will you be led?” The focus for capital will migrate from digital to mechanical. “The next 1,000 unicorns won’t be search engines or social media companies, they’ll be sustainable, scalable innovators – startups that help the world decarbonize and make the energy transition affordable for all consumers.” And he makes it clear again that his concerns are financial. “We focus on sustainability not because we’re environmentalists, but because we are capitalists and fiduciaries to our clients.”

It’s never been more essential for CEOs to have a consistent voice, a clear purpose, a coherent strategy, and a long-term view. Your company’s purpose is its north star in this tumultuous environment. The stakeholders your company relies upon to deliver profits for shareholders need to hear directly from you – to be engaged and inspired by you. They don’t want to hear us, as CEOs, opine on every issue of the day, but they do need to know where we stand on the societal issues intrinsic to our companies’ long-term success.

Larry Fink’s Annual 2022 Letter to CEOs | BlackRock