The Natural Resources Sector

Covering companies in the mining, energy and agriculture industries.


Capital at risk. The value of investments and the income from them can fall as well as rise and are not guaranteed. Investors may not get back the amount originally invested.

Natural resources

Why natural resources?

Natural resources encapsulates companies involved in the mining, energy and agriculture sectors. They offer an alternative and efficient way for investors to achieve exposure to commodity prices. The three key reasons investors look to natural resources are set out below.
Exposure to commodity prices
Exposure to commodity prices:
Natural resources equities’ performance is typically primarily driven by commodity price moves.
Natural resources exposure helps to diversify client portfolios.
Inflation hedging properties
Inflation hedging properties:
Commodity prices are typically positively correlated with inflation expectations.
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The low carbon transition

We recognise natural resources companies need to be part of the low carbon transition, from reducing their own emissions to supplying materials required to build wind turbines and solar panels.

The chart below looks at copper as an example, highlighting the expected growth in demand from electric vehicles, wind and solar between now and 2030.

Expected growth in copper demand from electric vehicles (EVs), wind and solar

Expected growth

Source: Woodmac, CRU, Goldman Sachs Global Investment Research, 31 Oct 2021

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The transition to net zero is already uneven with different parts of the global economy moving at different speeds. It will not happen overnight. We need to pass through shades of brown to shades of green.

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Larry Fink Larry Fink Founder, Chairman and CEO, BlackRock

BlackRock’s Natural Resources Team

BlackRock’s London-based Natural Resources team sits within the Fundamental Equity division. It is the largest team of its kind both in terms of headcount and assets under management. The team manages mining, gold, energy and broad natural resources strategies.
Well resourced
Well resourced
8 portfolio managers
4 dedicated analysts
6 product strategists
Established team
Established team
First fund launched in 1988
Diverse backgrounds
Diverse backgrounds
Trained geologists
Mining industry experience
Rigorous investment process
Rigorous investment process
Fundamental research
Company meetings
Site visits

Portfolio managers

Evy Hambro
Mining and Gold
Mining and Gold
Olivia Markham
Hannah Johnson
Tom Holl
David Higgins
Alastair Bishop
Energy and Sustainable Energy
Energy and Sustainable Energy
Mark Hume
Charles Lilford
Sustainable Energy
Sustainable Energy

ESG in the investment process

01. Risk-adjusted returns

Our belief is that companies with stronger and / or improving ESG credentials offer better risk-adjusted returns over the long-run.


02. Critical input

We consider ESG alongside valuation and fundamentals when constructing portfolios to maximise risk-adjusted returns.


03. Backing improvers

We are not precluded from holding companies that have had ESG issues in the past as, if we believe it’s moving in the right direction, that may form part of our investment rationale.


04. Looking ahead

We take forward-looking views on each company’s ESG profile and document these in our research templates.


05. Rigorous process

Views are formed through activities such as: engaging with management teams, site visits and collaboration with the BlackRock Investment Stewardship team.


Risk: This information should not be relied upon as research, investment advice, or a recommendation regarding any products, strategies, or any security in particular. This is for illustrative and informational purposes and is subject to change. It has not been approved by any regulatory authority or securities regulator. The environmental, social, and governance (“ESG”) considerations discussed herein may affect an investment team’s decision to invest in certain companies or industries from time to time. Results may differ from portfolios that do not apply similar ESG considerations to their investment process.

Related Funds

Discover our range of Natural resources funds

View fund range