The powerf of Larry Fink anual letter!

Fire, deforestation, hurricanes out of season, devastating floods, severe dry land… The climate events never left the news. Sustainability has become the central theme of all matters, including economics.

por NTICS | 17 de May de 2021

“We are on the edge of a structural finance change”, affirm the CEO and president of BlackRock council, Larry Fink, in his annual letter for the CEOs of companies which receive investments from the world largest funds managers. He carries the responsibility of who manages more than US$ 6 trillions on assets under his administration. “The evidence about the climate risks are forcing investors to reevaluate the basic assumptions about modern finances”, complemented the executive.

The words that shook the investment world did not come from the environmentalist Larry, but from the capitalist. He alerted companies’ council to intensify their efforts to fight against the climate emergencies, marking a significant change on the public posture of BlackRock, in the middle of growing concerns about global warming.

In his annual letter to the executive-presidents, Fink said that investors are worried about how unsustainable commercial practices can limit their future wealth. And highlighted that BlackRock would leave any investment which represented a high risk for sustainability, including coal producers, as they participated in what he described as “fundamental reformulation of the finances”.

Companies which still want to use the funds investments must pay attention to the necessity of considering the environment, social and governance (ESG) dimensions of their business model.

Fink talks about three essentials points:

Climate risk is a financial risk: BlackRock will deepen the sustainability integration on platforms of investment and risk management; expand sustainable offers to investors and increase the focus on sustainability for the governance activities and stewardship. “We believe that sustainability must be our standard for investment. BlackRock plan to make sustainability our solution standard offer.”
More transparency for shareholders: “In the future, greater transparency on sustainability issues will be a persistently important component of each company’s ability to attract funds. It will help investors to evaluate which companies are serving their shareholders efficiently, remodeling the capital flow according to it”, he determined.
Responsible and transparent capitalism: “The goal cannot be transparency in the name of transparency. It must be a way to reach a more sustainable and inclusive capitalism. Companies must be deliberate and engaged to stand for the purpose and serve all the interested parts – their shareholders, clients, employees and communities where they operate”, wrote the CEO.

The large funds expect to invest on companies with active ESG plans, which use certified raw materials and suppliers, with good management of hydrous resources, opt for renewable energy, create inclusion programs, with salary equality in matter of gender and opportunity, invest on employees formation and also for the community where they are inserted, are transparent and respectful about collaborators, suppliers and consumers rights, acting with social responsibility.

Do you want to understand how your company can be more participatory in the development and social responsibility movement? This initiative increases ESG rates with a focus on Social, proving that the company is truly engaged with sustainability. Get in touch and discover alternatives to work for a purpose. Get in touch through the website https://nticsprojects.com

Whatsapp | E-mail: contact@nticsprojects.com | Phone +1 (407) 258 3604

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