Question

b. In April 2015, Larry Fink, CEO of Blackrock, wrote an open letter (listed as assigned reading on the course website) to S&P500 CEOs in the US and to CEOs of some of the largest publicly traded foreign companies. Identify and briefly discuss two key issues raised in this letter. (6 pts)

Answer 1

• Climate risk Investment risk

As someone who reminds others, it is our responsibility to assist clients on this journey. Our investment confidence is that sustainability and climate-linked portfolios can provide a better return on risk to investors. And with the impact of sustainability on investment returns increasing, we believe that sustainable investment is a strong foundation for future customer positions.

• Improved Disclosure of Stocks

We believe that all investors, as well as regulators, insurers, and the public, need a clear picture of how companies manage firm-related questions. This data should extend beyond the weather to questions of how each company operates its complete set of stakeholders, such as the diversity of its employees, the robustness of its supply chain, or how well it protects its customer data. The prospects of each growth company are immeasurable from its ability to operate sustainably and serve a complete set of stakeholders.