BlackRock's Larry Fink says the next 1,000 unicorns will be sustainable companies that make energy affordable — not more search engines or social-media titans
BlackRock's Larry Finkwrote about the importance of sustainability in his 2022 letter to CEOs.
- He said the next 1,000
unicornswill be startups that help decarbonize the economy— not social-media titans.
The US is beginning its transition to a green economy, and the CEO of a $10 trillion company said businesses need to play their part in fighting the
Larry Fink, the CEO of investment corporation BlackRock, released his 2022 letter to CEOs on Monday, in which he highlighted the role capitalism plays in the economy now and in the future — and combatting the
"We need to be honest about the fact that green products often come at a higher cost today," Fink said. "Bringing down this green premium will be essential for an orderly and just transition. With the unprecedented amount of capital looking for new ideas, incumbents need to be clear about their pathway succeeding in a net zero economy. And it's not just startups that can and will disrupt industries. Bold incumbents can and must do it too."
The disruption Fink referred to is one that is not only on businesses' minds — President Joe
Biden unveiled a plan in October outlining strategies to protect Americans' retirements and savings from those risks — one of which included disclosing climate-related financial risks in investment decisions, which Fink recommended businesses do.
"We focus on sustainability not because we're environmentalists, but because we are capitalists and fiduciaries to our clients," Fink said. "That requires understanding how companies are adjusting their businesses for the massive changes the economy is undergoing."
Still, even if companies do increasingly focus on decisions to help the climate, meeting Biden's goal to cut carbon emissions in half by 2030 requires government aid. The president proposed a $555 billion investment in his Build Back Better agenda to meet his climate goals, but that agenda is currently stalled in the Senate, jeopardizing progress in transitioning to a green economy.
Fink said government aid is vital.
"Capitalism has the power to shape society and act as a powerful catalyst for change," he said. "But businesses can't do this alone, and they cannot be the climate police. That will not be a good outcome for society. We need governments to provide clear pathways and a consistent taxonomy for sustainability policy, regulation, and disclosure across
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