Larry Fink, CEO of BlackRock, recently wrote a letter to CEOs that they invest with. The letter was a powerful reminder of the changes we are seeing in the way investors and companies relate one another.
BlackRock is not alone in their demands. There's a global surge in the attention that wealth management companies are giving to sustainable businesses. As McKinsey & Company note, sustainable investing has moved from 'why' to 'why not'.
Investors demand that businesses have a long-term vision with a diverse human resource pool and an embedded understanding of its place in society and the way it relates to the environment. Companies need to align themselves with these investor requirements.
Making sustainability a core part of a company's business model is a salient way to align with investor needs and achieve long-term success. This is a powerful positive feedback loop that enables businesses to attract high calibre investors, business partners and employees.
Read Fink's full letter here.