Aug 07, 2020 - 1:45pm

BlackRock Has Engaged with More than 370 Companies on Climate Risks

Ambitions

  • BlackRock offset 100% of its 2018 global travel-related emissions by retiring carbon credits from The Conservation Fund’s Garcia River Forest*.
  • BlackRock offset 100% of its 2017 global travel-related emissions by investing in reforestation projects through The Nature Conservancy*.
    • The company achieved its 100% renewable energy target for its global operations in 2020 through matching the same amount of renewable electricity as the electricity that its global operations and data centers consume annually.

* BlackRock’s support for this initiative is made via grants recommended to and paid by the BlackRock Charitable Trust, a donor-advised fund.

Investments

BlackRock offers its asset owner clients a range of environmentally focused investment solutions, including clean energy funds and exchange-traded funds (ETFs), green bonds, infrastructure funds, and environmentally aware money market funds, to meet their investment criteria and preferences. This effort represents more than $50 billion** in assets under management (AUM), which supports no carbon, low-carbon, and energy transition solutions, including the following:

  • $22.3 billion in AUM invested in a suite of screened- and low-carbon investment products.
  • Over $13 billion AUM in green bonds held in funds and institutional portfolios.
  •  $7.8 billion in invested and committed capital dedicated to renewable power on behalf of its global client base of pension plans, insurers, and other institutional investors, supporting over 270 wind and solar projects globally.
  • $5.1 billion additional AUM invested in infrastructure that supports energy transition and lower carbon footprints.
  • $1.7 billion in AUM in ETFs and mutual funds invested in publicly listed companies in the clean energy sector.
  • BlackRock offers over $25 billion** in real estate investments that embed Environmental, Social, and Governance (ESG) principles in investment decisions and management processes, including climate.
  • In 2018, real estate investments achieved a 3.5% CO2 reduction and 3.3% energy use reduction.

** All AUM data as of September 30, 2019.

Innovations

BlackRock is and will continue to be an innovator in the climate-related space.

  • The company developed a low-carbon Transition Ready strategy, which assesses risks and opportunities for a low-carbon economy.
  • BlackRock endorsed The One Planet Sovereign Wealth Fund Framework, which calls for integrating climate-related risks and opportunities into investment management by sovereign wealth funds and the broader market.
  • The company is an active participant in several standard-setting initiatives, including the Sustainability Accounting Standards Board (SASB) and the Financial Stability Board’s (FSB’s) Task Force on Climate-Related Financial Disclosures (TCFD).
  • BlackRock issued the report Getting Physical: Scenario Analysis for Assessing Climate-Related Risks, which develops a rigorous, data-based framework to better assess climate-related risks on an individual asset level. Getting Physical won Environmental Finance’s Sustainable Investment Award for Best Fixed Income ESG research.
  • BlackRock issued a report on water stress titled Troubled Waters, sketching out the financial impact of this important risk on portfolios.

Engagement

BlackRock Investment Stewardship (BIS) includes climate risk as a key component of its engagement with companies on how they are managing material environmental risks and opportunities inherent to their businesses. Over the past two years, BIS has engaged with more than 370 companies globally on climate risks, which the company believe have the potential to impact the long-term value of many companies. BlackRock’s approach to engagement on climate and other ESG issues is outlined in its report Our approach to sustainability.

This information is sourced from information BlackRock has made publicly available as of July 2020. It is not intended to be sales material, research, or relied on in making investment decisions with respect to a specific company or security. Any reference to a specific company or security is for illustrative purposes.

For more information, visit https://www.blackrock.com/corporate/sustainability.

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