ESG
“ THESE TARGETS , AND THE QUALITY OF PLANS TO MEET THEM , ARE CRITICAL TO THE LONG-TERM ECONOMIC INTERESTS OF YOUR SHAREHOLDERS ”
LARRY FINK CHAIRMAN AND CEO , BLACKROCK
Another prominent player in the ESG arena is BlackRock , the world ' s largest asset manager with US $ 10tn in asset under management .
Larry Fink , chairman and CEO of BlackRock , issued his yearly letter to CEOs in January , urging companies to do more than set a long-term net-zero target . " We are asking companies to set short- , medium- , and long-term targets for greenhouse gas reductions ," Fink wrote . " These targets , and the quality of plans to meet them , are critical to the long-term economic interests of your shareholders ."
Fink went even further in his 2022 letter , encouraging employees to establish more immediate emissions reduction targets and report their progress according to a framework developed by the Task Force on Climate-related Financial Disclosures .
Touching on the issue of sustainability in ESG , Fink defines a corporate environment as one that is concerned with issues such as racial equity , childcare , and mental health , in addition to day-to-day operations .
" Companies that deliver are reaping the rewards ," Fink said . " Our research shows that companies who forged strong bonds with their employees have seen lower levels of turnover and higher returns through the pandemic . Companies not adjusting to this new reality and responding to their workers do so at their own peril ."
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