For BlackRock and others, ESG investing has become a highly lucrative strategy. Philipp Hildebrand, the firm’s vice chairman, said in October that BlackRock expects “a vast reallocation of capital toward sustainable products.”
Fink also prodded shareholders and governments for action. Governments, he said, should offer more guidance on sustainability policy, regulation and disclosure across markets. BlackRock is also working on an initiative that would give clients more power to vote their proxies.
More from Fink’s letter:
• The pandemic has fundamentally shifted the nature of work, leading to more turnover and more staff seeking flexibility. “Companies not adjusting to this new reality and responding to their workers do so at their own peril.”
• Sustainable investments have reached $4 trillion and will continue to rise. “The decarbonizing of the global economy is going to create the greatest investment opportunity of our lifetime. It will also leave behind the companies that don’t adapt.”
• BlackRock is working to expand an initiative for investors to use technology to cast proxy votes. “We are committed to a future where every investor – even individual investors – can have the option to participate in the proxy voting process if they choose.”
• Fink said that he plans to launch a Center for Stakeholder Capitalism to create a “forum for research, dialogue, and debate.” The center will help to explore the relationships between companies and their stakeholders, he said.
This article was provided by Bloomberg News.