This paragraph needed the most work and exemplifies how you can use your power to create real on-the-ground change. It is the responsibility of every board to make climate change central to your company’s strategy. To incentivize these targets we will vote no-confidence for all board candidates of companies that do not make these commitments and stick to them. It’s also why we ask you to issue reports consistent with the CA100+ benchmarks and Task Force on Climate-related Financial Disclosures (TCFD): because we believe these are essential tools for understanding a company’s ability to adapt for the future.
These targets, and the quality of plans to meet them, are critical to the long-term economic interests of your shareholders. As part of that focus, we are asking all companies to set short-, medium-, and long-term targets for greenhouse gas reductions of 5% per year for the next ten years to reach net zero before 2050. That requires understanding how companies are adjusting their businesses for the massive changes the economy is undergoing. We focus on sustainability not because we’re environmentalists, but because we are capitalists and fiduciaries to our clients. Paragraph 27: I added the bold-underline text in the following sentence: Paragraph 10-26: No changes for 17 paragraphs! Without implementation this idea is empty words. You seem to think that customers want talk. “Customers want to see and hear what you stand for, and more importantly the policies and practices you implement, as they increasingly look to do business with companies that share their values demonstrate this by action. Paragraph 9: I added the bold-underline text in the following sentence: Not sure why you left out supply chains which reflects back to the prior change about interconnection. Paragraph 6: I added “its supply chains.” As you know, stakeholder capitalism has five elements, employees, customers, community, supply chain, and shareholders. I urge you to use this power for the good of all - not just talk about it. You are one of a handful of people on the planet who has the power to make real change, in the real world, to solve our most dire problems. Larry, you are in a very unique position. The conceptual framework describing system-level problems is strong, yet you fail to use Blackrock’s brand and clout to incentivize solutions on climate change, racial injustice, and other pernicious issues.
My mark-ups of your CEO letter this year are fairly minimal. You have my gratitude and personal offer to assist in any way to, “bring together leading CEOs, investors, policy experts, and academics to share their experience and deliver their insights.” I particularly appreciate the creation of the “Center for Stakeholder Capitalism” as it answers the request As You Sow made in two shareholder resolutions for an implementation plan of the Business Roundtable pledge.
The solutions are within your grasp and using your power to drive timely action can help ensure we meet our goals. What your 2022 letter lacks is, similar to last year, an implementation plan.
#LARRY FINK CEO LETTER FULL#
I once again took the liberty of marking up your CEO letter to show you how close you are to using the full extent of your power to solve the problems you so eloquently articulate about the existential issues confronting the entire economy and global society.
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