Over the last few years the annual letter from Larry Fink of BlackRock to CEOs has always gathered media and market interest. Whether BlackRock is a shareholder in your organisation or not, his letters have always been a very good interpretation of the market’s direction of travel and adoption of the drivers of ESG.
Our key takeaway from his letter this year is how ESG must be treated holistically and not in a series of silos and practice areas. He highlights the importance of climate and social change, and how the necessary long-term corporate transition will impact across the whole business and strategy incorporating financial materiality, social relevance and governance. His letter will give you a good indication of the direction of ESG travel in the future and should be considered in every company’s purpose, management process, actions, narrative and reporting.