“No relationship has undergone more changes due to the pandemic than that between employers and employees” and the great acceleration caused by the virus is “pushing companies to create better and more innovative environments for their employees”. If before “mental health was rarely talked about in the workplace and the wages of low and middle-income workers barely grew” now, together with “ethnic equality” and “childcare” are fundamental issues, “a essential feature of effective capitalism “. And “companies that do not adapt to this new reality, and do not follow up the requests of their employees, do so at their own risk”. Like every year, Larry Fink, the most powerful man in finance, the super manager who manages over 10 billion dollars with his Blackrock, takes a pen and paper and writes to the CEOs of the companies whose investments the American fund takes care of. At the center of the message is the work upset by the great emergency, and a series of questions addressed to the lords of finance: “What are you doing to consolidate the bond with your employees? How are you making sure that employees, regardless of their background, feel safe enough to unleash their creativity, innovation and productivity? How are you making sure that your board implements proper vigilance on these crucial issues? The place and the ways of working will no longer be the same as before. How is your company’s culture adapting to this new world? ”.
It is a clear message, at a key moment. “Stakeholder capitalism has nothing to do with politics, it does not fit into any social or ideological agenda. It is not a” woke “instance, he writes.” Young and innovative companies have never enjoyed easier access to capital. There has never been so much money available to make new ideas become reality – says Fink – Thanks to all this, a dynamic and innovative landscape is developing. “The other pillar is the environment . “It has been two years since I wrote that climate risk is an investment risk – remembers Fink -. And, in this short period, we have witnessed an epochal shift in capital. Sustainable investments have now reached 4 trillion dollars. Equities, and ambitions for decarbonisation have also increased. This is just the beginning: The massive shift towards sustainable investment is still accelerating. Whether it’s capital being channeled or in new businesses focused on energy innovation, or capital shifting from traditional indices to more personalized portfolios and products, we will see greater mobility of money. Every business and every sector will be transformed by the transition to a zero-emissions world. The question now is: will you be among those who will lead the change or among those who will be led? ”. Fink is aware that “the pace of change will be very different in developing countries than in developed ones. But all markets will require unprecedented investments in decarbonisation technologies. We need breakthrough discoveries like the electric light bulb, and we need to promote investment in those discoveries so that they are scalable and affordable. In pursuing these goals – which will take time – governments and businesses must ensure that people continue to have access to affordable and reliable energy sources. This is the only way to create a green economy that is fair and just and avoid social conflict. And any plan that focuses only on limiting supply without affecting the demand for hydrocarbons will raise energy prices for those who can least afford it, causing greater polarization on climate change and undermining progress. Divestment from entire sectors – or, simply, the shift of carbon-intensive activities from public to private markets – will not result in the achievement of the net zero emissions target ”.
Finally, a passage on the heart of companies and finance and their relations with the public. “Capitalism has the power to shape society and to act as a powerful catalyst for change. But companies can’t do it alone, and they can’t be the climate “vigilantes”. There would be no positive outcome for society. We need governments to provide clear pathways and a consistent taxonomy for sustainability policy, regulation and disclosure in markets. Governments must also support communities affected by the transition, help catalyze capital into emerging markets and invest in the innovation and technologies that will be essential to decarbonise the global economy. It was the partnership between the public and private sectors that led to the development of COVID-19 vaccines in record time. When we harness the power of the public and private sectors, we can achieve truly incredible results. And that’s what we have to do to reach the net zero goal “.
