SUSTAINABILITY AT BLACKROCK

Investing in the transition to a low-carbon economy

BlackRock serves clients around the world to help them achieve a better financial future, striving to meet their unique needs. As the world shifts to new energy systems, it creates significant investment opportunities and risks for our clients.

 

It is our role to seek optimal returns and outcomes for our clients in line with their investment choices, while managing the risks as effectively as possible.

We're helping our clients navigate the low-carbon transition

The low-carbon transition is reshaping ​production and consumption across regions ​and sectors. It’s affecting how people buy, ​sell, make, and move things. 

We see the transition to a low-carbon economy having implications for macroeconomic trends and portfolios. We are providing clients with the solutions and tools to help them achieve their investment objectives.

To serve our clients, we have 600+ global sustainable and transition specialists focused on providing customized insights, data and a choice of investment solutions and technology tailored to our clients' needs.​

We approach this work solely in service of our clients' best financial interests. That is the foundation upon which we built BlackRock into the most trusted asset manager in the world1 – a total focus on our clients, underpinned by our respect for their diverse preferences and uniqueness.

Why does the low-carbon transition matter for our clients?

Structural shifts associated with the low-carbon transition – technological innovation, consumer and investor preferences for lower-carbon products, and shifts in government policies – are reshaping production and consumption and spurring capital investment.

Our global team of investment and sector specialists, climate scientists, data analysts, and engineers research macroeconomic and investment trends related to the transition, in order to evaluate risks and opportunities and deliver unique insights to clients.

Three forces are driving this economic transformation, with implications across regions and sectors

Three forces are driving this economic transformation, with implications across regions and sectors are technology with a 79% reduction in battery costs (source 2), consumer preferences with a 40% electric vehicle share of global passenger vehicle sales by 2030 (source 3), and policy with upwards of

1 BlackRock is trusted to manage more assets than any other global asset manager, with an AUM of $9.1 trillion as of September 30, 2023.

2 BloombergNEF, Top 10 Energy Storage Trends in 2023

3 BloombergNEF, Electric Vehicle Outlook, June 2022. This figure reflects the report’s Economic Transition Scenario.

4 BII, Rocky Mountain Institute, and European Commission, December 2022. $ figures are shown in USD.

TEXT: The world is transitioning to a low-carbon economy.

TEXT: Technological innovation is spreading

Carolyn Weinberg: Wow, so this is the nerve center?

Dickon Pinner: Each one of those is one of these automated trucks?

Alvin Foo: Automated guided vehicles.

TEXT: Climate and transition policy initiatives are driving transformation.

Chris Kaminker: Recent shifts in U.S. policy have sparked a global clean energy race that is creating investment opportunities on both sides of the Atlantic.

TEXT: Companies are transforming and supply chains are evolving

Martin Lundstedt: This is the beauty.

Mark Wiedman: Fully electric!

Martin Lundstedt: Fully electric.

Mark Wiedman: I am driving a proper truck.

Martin Lundstedt: Yeah, yeah, absolutely.

TEXT: The shape of the global economy is changing.

TEXT: And new investment risks and opportunities are emerging.

Anne Valentine Andrews: The low-carbon transition is a once-in-a-lifetime opportunity for our clients and BlackRock has the breadth, expertise and whole portfolio solutions to meet our clients needs.

CONCLUSION

VO: The transition to a lower-carbon world is happening.

VO: And at BlackRock…

VO: We’re ready.

Corporate site Disclosures

This material is intended for information purposes only, and does not constitute investment advice, a recommendation or an offer or solicitation to purchase or sell any securities, funds or strategies to any person in any jurisdiction in which an offer, solicitation, purchase or sale would be unlawful under the securities laws of such jurisdiction. The opinions expressed are subject to change without notice. Reliance upon information in this material is at the sole discretion of the reader. Investing involves risks. BlackRock does and may seek to do business with companies covered in this video content. As a result, viewers should be aware that the firm may have a conflict of interest that could affect the objectivity of this video.

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Tracking the low-carbon transition

The investment landscape is being shaped by big structural changes, or mega forces, that we think could create both investment risks and opportunities across public and private markets.

Chris Kaminker
Head of the Sustainable Investment Research & Analytics, BlackRock Investment Institute

What we’re hearing from clients

Clients are asking for our perspective on the long-term mega forces – including the transition to a low-carbon economy – that will impact portfolios, for analytics that will help them measure and track those forces, and for products across the whole portfolio that will help them capitalize on opportunities to meet their investment objectives.
56% of global institutional investors expect to increase their allocations to transition strategies over the next 1-3 years^1^

5. BlackRock iResearch Services global survey of 200 institutional investors with US$8.7 trillion of assets. May-June 2023. Survey covered institutional investors’ attitudes, approaches, barriers and opportunities regarding transition investing.

Hear from business leaders and investors leading the transition

BlackRock speaks to thought leaders and industry experts from around the globe about the biggest trends moving markets. Listen to companies, business leaders and investors at the forefront of the transition to a low-carbon economy.

Low-carbon transition investing 101

Episode 154 podcast
Episode 154 podcast /
Low-carbon transition investing 101

The transition to a low-carbon economy has emerged as a key player in the five mega forces that the BlackRock Investment Institute has outlined in recent episodes. But what exactly does it mean to "invest in the transition to a low-carbon economy"?

The race is on for EVs

Episode 151 podcast
Episode 151 podcast /
The race is on for EVs

Charlie Lilford, portfolio manager from BlackRock’s Fundamental Equities business joins host Oscar Pulido to talk about the rate of adoption of electric vehicles across the world and where he sees the most exciting investment opportunities.

The role of food in the transition to a low-carbon economy

Episode 134 podcast
Episode 134 podcast /
The role of food in the transition to a low carbon economy

According to a 2021 UN-backed report, the world’s food systems account for approximately one-third of human-caused emissions.  

Mark Schneider, CEO of Nestle, the world’s largest food and beverage company, joins The Bid to discuss how food – from the farm to the fork to the compost bin – plays a role in the transition to a low-carbon economy. 

Innovation in action

We visit a range of portfolio companies that are developing innovative solutions that could transform their industries.

Mark: When do we start to lift out of the water?
Gustav: So the take off speed is around 16 knotts.
Mark: Punch it! Woo!
Mark:
We hope to hit the wake in time!
Mark: That was amazing!
Mark: By the way we totally need to play “Ride of the Valkyries” in the video.
Out of Office Open

Mark: When you think about electric vehicles, you think about cars, you might even think about trucks. But today, we're going to be thinking about boats, electric boats. I'm in Stockholm, Sweden. This is an electrofoil boat, and we're going to hear about how this may be part of the future of boat transport.
Mark: We're standing right in front of the Candela C-8.

Gustav: Exactly.

Mark: What is it?
Gustav:
It's an electric foiling boat and it's super fast, and has the longest range of any electrical boat in the world. Source: Candela, September 2023
Also, we create no wake. The key point with foiling is that it's much more efficient. So you cut the energy by 75%. Source: Candela, October 2023
The wings are underneath the water, the hull is above the water, so there's nothing that touches the surface. And there you have no wake.

Mark: And that's basically why it's so much more efficient. You're not pushing water out of the way.

Gustav: Exactly.Mark: And how fast can you go? How far can you go and how do I recharge?
Gustav: So this boat makes 27 knots as a top speed. Then you can run for 57 nautical miles. Recharging, it depends. I mean, if you do fast charging, we can do it in like 35 minutes. Source: Candela.com, September 2023
Mark: Let's also talk about public transport. Should we go over and maybe look at the ferry?

Gustav: Yeah. Let's do that!
Gustav: This is a ferry, and it's our first ferry that we built, and it's the first electric foiling ferry in the world. Source: Candela.com, 23 May 2022
In Stockholm, we are going to be able to run much faster than boats are running today and cut commuting times with 50%. Source: Candela.com ,23 May 2022

You also need only one staff on board, which helps to lower the cost. So enough talking about boats. Let's go boating instead.
Mark: Oh yeah!

Gustav: Now we are flying.

Mark: Oh my God
Mark: And there is no wake!
Gustav: No.

Mark: There is no wake.
Gustav:That's pretty amazing actually.

Mark: So that was awesome, but now I feel like I’d like to drive.
Mark: We are in the air!
Mark: Lets land.
Gustav: So then you just pull the throttle to the middle here.
Mark: Woah!!
Text: Candela is reimagining the future of boating by electrifying marine transportation.
Mark: Hydrofoiling, electric driving, super quiet, amazing!
Mark: That's a wrap!

Mark: When do we start to lift out of the water?
Gustav: So the take off speed is around 16 knotts.
Mark: Punch it! Woo!
Mark:
We hope to hit the wake in time!
Mark: That was amazing!
Mark: By the way we totally need to play “Ride of the Valkyries” in the video.
Out of Office Open

Mark: When you think about electric vehicles, you think about cars, you might even think about trucks. But today, we're going to be thinking about boats, electric boats. I'm in Stockholm, Sweden. This is an electrofoil boat, and we're going to hear about how this may be part of the future of boat transport.
Mark: We're standing right in front of the Candela C-8.

Gustav: Exactly.

Mark: What is it?
Gustav:
It's an electric foiling boat and it's super fast, and has the longest range of any electrical boat in the world. Source: Candela, September 2023
Also, we create no wake. The key point with foiling is that it's much more efficient. So you cut the energy by 75%. Source: Candela, October 2023
The wings are underneath the water, the hull is above the water, so there's nothing that touches the surface. And there you have no wake.

Mark: And that's basically why it's so much more efficient. You're not pushing water out of the way.

Gustav: Exactly.Mark: And how fast can you go? How far can you go and how do I recharge?
Gustav: So this boat makes 27 knots as a top speed. Then you can run for 57 nautical miles. Recharging, it depends. I mean, if you do fast charging, we can do it in like 35 minutes. Source: Candela.com, September 2023
Mark: Let's also talk about public transport. Should we go over and maybe look at the ferry?

Gustav: Yeah. Let's do that!
Gustav: This is a ferry, and it's our first ferry that we built, and it's the first electric foiling ferry in the world. Source: Candela.com, 23 May 2022
In Stockholm, we are going to be able to run much faster than boats are running today and cut commuting times with 50%. Source: Candela.com ,23 May 2022

You also need only one staff on board, which helps to lower the cost. So enough talking about boats. Let's go boating instead.
Mark: Oh yeah!

Gustav: Now we are flying.

Mark: Oh my God
Mark: And there is no wake!
Gustav: No.

Mark: There is no wake.
Gustav:That's pretty amazing actually.

Mark: So that was awesome, but now I feel like I’d like to drive.
Mark: We are in the air!
Mark: Lets land.
Gustav: So then you just pull the throttle to the middle here.
Mark: Woah!!
Text: Candela is reimagining the future of boating by electrifying marine transportation.
Mark: Hydrofoiling, electric driving, super quiet, amazing!
Mark: That's a wrap!

Our fiduciary approach to sustainability and the low-carbon transition

As a fiduciary, our approach to investing in this transition is the same as our approach across our platform: we provide choice to our clients; we seek the best risk-adjusted returns within the mandates clients give us; and we underpin our work with research, data, and analytics.