The boss of the world's largest wealth manager Blackrock, Larry Fink, makes the CEOs of companies responsible for paying more attention to the interests of society.

Fink calls the system “stakeholder capitalism”.

For a number of years now, Fink, who once co-founded Blackrock and made his fortune on Wall Street, has been writing a letter at the beginning of the year to the CEOs in whose companies Blackrock is invested.

Again and again he takes up current social debates.

Inken Schoenauer

Editor in business, responsible for the financial market.

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In an interview with the FAZ last summer, Fink said about the motives behind his letters: “I had the feeling that the markets were only about short-term success.

But all the ups and downs on the stock exchanges are not important.

There were too few voices that took care of the long-term issue.

I wanted to change that.”

 “This is the power of capitalism”

This year, the Blackrock boss is about "stakeholder capitalism." It's not about politics.

Nor is it about a social or ideological agenda.

He also didn't "woke", i.e. woke up.

"It is capitalism fueled by relationships of mutual benefit." Benefits between CEOs, employees, customers, suppliers and communities without which companies could not thrive and "thrive."

"That is the power of capitalism," writes Fink.

In today's globally networked world, a company must create values ​​for all stakeholders, i.e. shareholders, employees, customers and suppliers, and at the same time maintain their appreciation, writes Fink.

This is the only way it can offer its shareholders value in the long term.

The basis of capitalism is the process of constant reinvention.

Companies need to evolve and respond to changes.

Otherwise they risk being squeezed out by new competitors.

The pandemic has changed the framework for almost every company.

"More and more money will be in motion."

You have created new companies, but also ruined existing ones. Above all, however, it has significantly accelerated the upheavals in our lives and business world triggered by technological progress. At the same time, the pandemic has undermined trust in traditional institutions and exacerbated polarization in many Western societies. It has never been more relevant for CEOs to take a stand and have a clearly defined corporate purpose, a coherent business strategy and a long-term perspective.

As in previous years, Fink also addressed the issue of sustainability in his letter.

Two years ago, Fink wrote that climate risk is also an investment risk.

In this short period of time, there has been a fundamental redistribution of capital.

Sustainable investments have now reached the $4 trillion threshold.

This is just the beginning.

The tectonic shift of capital towards sustainable investments is gaining momentum.

Whether it's capital for innovative projects in the energy sector or assets that are being shifted from traditional index products into tailor-made portfolios and products.

"More and more money will be in motion."

Fink predicts that the next 1,000 unicorns, or startups valued at more than $1 billion, will not be search engines or social media companies.

In his opinion, there will be adaptable innovators: start-ups, for example, who develop solutions for doing without fossil fuels and make the energy transition affordable for everyone.

“We have made sustainability the focus of everything we do.

Not because we are environmentalists, but because we are capitalists and trustees of our customers.”