Our fiduciary approach to sustainability and the low-carbon transition

BlackRock was founded on the premise of understanding and managing investment risk, anticipating our clients’ needs, and supporting them in achieving their long-term investment goals. That is why we look at sustainability information — as an investor and a fiduciary.

Our investment approach is informed by three principles:

choiice performance

We apply those same principles to sustainability and the low-carbon transition.

Client choice

We start with the client

Client choice

Our role is to listen to and deliver choice for our clients. Our clients choose their investment objectives, and they look to BlackRock to meet their needs. We offer them choices across a wide range of index, active, and whole portfolio solutions. For clients asking how to mitigate risk and capture opportunities associated with sustainability-related trends (such as the low-carbon transition), or for clients asking for products with sustainability- or transition-focused objectives, we offer a range of options and choices in products, portfolio construction, analytics, and stewardship (Voting Choice).

We continue to innovate for and with clients, responding to client demand.


We seek the best risk-adjusted returns


We seek the best risk-adjusted returns within the mandates clients give us. As a fiduciary, we manage material risks and opportunities that could impact portfolios, including those related to sustainability. When financially material, we incorporate environmental, social, and governance information alongside other information into our firmwide processes to enhance risk-adjusted returns.


We underpin our work with research, data, and analytics


Research informs our investment decisions and product innovation. We research major structural trends shaping the economy, markets, and asset prices. We assess how these trends could affect long-term value and how they could unfold over time. The transition to a low-carbon economy is one trend that we research, because we see it having implications on macroeconomic trends, company financial prospects and business models, and portfolios.

More information about our fiduciary approach

Read more about our fiduciary approach to sustainability and the transition to a low-carbon economy.
A construction worker installs solar panels

An orderly transition would result in higher economic growth

Our research shows that an orderly transition would result in higher economic growth compared with no climate actions – and would create a more constructive macro environment for financial returns for our clients overall.

BlackRock’s role in the transition to a low-carbon economy is as a fiduciary. We seek the best risk-adjusted returns for our clients, and we rely on a research-based view of economic developments, including how the low-carbon transition is likely to unfold in practice over time.

Industry Associations

BlackRock is member of several industry associations, including those that are related to sustainability and the transition to a low-carbon economy, in order to participate in dialogue on matters that may impact client portfolios. These include:

- ISSB Investor Advisory Group
- Taskforce on Nature-related Financial Disclosures (TNFD)
- Net Zero Asset Managers Initiative
- Glasgow Financial Alliance for Net Zero

On behalf of our clients, we are also regular attendees of the annual UN Climate Change Conferences (COP).

BlackRock International is a member of Climate Action 100+.1

BlackRock’s investment decisions and its stewardship engagement and voting are governed strictly by our fiduciary duty to clients. Where relevant, as part of joining these groups, we have made it clear that we do not coordinate our votes or investment decisions with any external group or organization.

1. See here BlackRock's 2024 letter to Climate Action 100+ regarding the transfer of membership to BlackRock International.