Published

September 22, 2021

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BlackRock

Ambitions

BlackRock is committed to supporting the goal of net zero greenhouse gas (GHG) emissions by 2050 or sooner. The company is taking a number of steps to help investors prepare their portfolios for a net zero world, including capturing opportunities created by the net zero transition.

BlackRock is implementing several key actions for 2021 that fall into three broad categories: measurement and transparency, investment management, and investment stewardship.

  • Measurement and Transparency
  • Investment Management
  • Stewardship

Investments

In 2019, BlackRock outlined its conviction that the world was on the cusp of a tectonic shift—a fundamental reallocation of capital toward sustainable assets. In 2020, this shift began. From January to November 2020, investors in mutual funds and ETFs globally invested $288 billion in sustainable products, a 96% increase over the whole of 2019.

BlackRock was ready for and moved with this shift:

  • In 2020, BlackRock completed its goal of having 100% of the firm’s approximately 5,600 active and advisory BlackRock strategies ESG integrated, covering $2.7 trillion in assets.
  • BlackRock introduced 93 new sustainable solutions in 2020, helping clients allocate $39 billion to sustainable investment strategies, which helped increase its sustainable assets by 41% from December 31, 2019.
  • All of BlackRock’s discretionary active portfolios have completely exited any investment in public companies with more than 25% of revenues from thermal coal production and are free from any company with ties to controversial weapons.

Innovations

To keep up with client interest and demand, BlackRock launched a variety of new products and tools:

  • Aladdin Climate introduced setting a new standard for assessing environmental risks across asset classes in investment portfolios.
  • BlackRock added 1,200 sustainability metrics to Aladdin and established data partnerships with Sustainalytics, Refinitiv, and Rhodium to help clients better understand ESG and physical climate risks.
  • The company pioneered new sustainable strategies with the first dedicated ESG solution in Mexico and, in the U.S., the first index-based target-date ESG funds and the first suite of single-ticker ESG asset allocation ETFs.
  • A BlackRock fund raised $5.1 billion designed to invest client capital in infrastructure assets, like natural gas and renewables, that support the global energy transition.
  • The firm invested client capital in 18 onshore wind projects in Europe and built the largest ever floating solar project in Taiwan, which has helped provide land for agriculture and local housing.

Engagement

BlackRock believes that sustainability risk—including climate risk–is investment risk. As a long-term investor on behalf of its clients, BlackRock Investment Stewardship (BIS) engages companies to understand how they are mitigating climate-related risks and implementing plans to transition to a low-carbon economy. Over the past year, BIS amplified its climate-related engagements, holding approximately 2,330 discussions focused on this topic with companies globally*

In 2021, BIS expanded its climate focus universe to over 1,000 carbon-intensive public companies that represent 90% of the global scope 1 and 2 GHG emissions of BlackRock’s clients’ public equity holdings. BIS’ approach to engagement on climate and other ESG issues is outlined in its Engagement Priorities for 2021 and its report Pursuing long-term value for our clients.

*Engagement data from July 1, 2020, through June 30, 2021.

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