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 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 700+ 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.

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

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

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

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.

Related transition resources

Tracking the low-carbon transition

The transition to a low-carbon economy is set to spur a massive reallocation of capital as energy systems are rewired.
Learn more

Climate resilience: an emerging investment theme

Moving beyond risk assessments to climate resilience as an investment theme.
Learn more

Emerging markets: financing the transition

Emerging markets are pivotal to the global transition to a low-carbon economy. Reforms to plug the shortfall in investment could present both opportunities and risks for investors.
Learn more

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.

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