BlackRock Puts CEOs on Notice: The Environment Matters

first_img FacebookTwitterLinkedInEmailPrint分享Business Insider:BlackRock CEO Larry Fink just sent a warning shot to CEOs across the world: start accounting for the societal impact of your companies, or risk disappointing the largest asset manager in the world.In a letter to CEOs of public companies, Fink, whose firm manages $6.3 trillion in assets, said that companies needed to demonstrate a strategy for long-term value creation and financial performance, and that understanding a company’s effect on the world was a key component.Simply managing for short-term shareholder profit is not an acceptable management strategy, according to Fink.“Society is demanding that companies, both public and private, serve a social purpose,” Fink wrote. “To prosper over time, every company must not only deliver financial performance, but also show how it makes a positive contribution to society. Companies must benefit all of their stakeholders, including shareholders, employees, customers, and the communities in which they operate.”Fink said BlackRock would ramp up its investor-stewardship initiative, started in 2011 to favor engaging with companies and their management over proxy voting. The stewardship team will double in size over the next three years under the new leadership of Barbara Novick, a vice chairman who helped found BlackRock, Fink said.“BlackRock recognizes and embraces our responsibility to help drive this change,” Fink wrote. “In order to make engagement with shareholders as productive as possible, companies must be able to describe their strategy for long-term growth…. Companies must ask themselves: What role do we play in the community? How are we managing our impact on the environment?”More:  BlackRock Puts CEOs On Notice: The Environment Matters BlackRock Puts CEOs on Notice: The Environment Matterslast_img

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