BlackRock Sustainability

“Purpose is not a mere tagline or marketing campaign; it is a company’s fundamental reason for being – what it does every day to create value for its stakeholders. Purpose is not the sole pursuit of profits but the animating force for achieving them.” — Larry Fink’s annual letter to CEOs, 2019

BlackRock’s purpose is to help more and more people experience financial well-being.

In pursuit of our purpose, a focus on long-term sustainability is embedded across our business.

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BlackRock manages $6.8 trillion of assets on behalf of diverse clients around the world. We dedicate ourselves, as a fiduciary, to protecting and growing the value of our clients’ assets over the long-term. That includes a
focus on sustainability.

We are integrating ESG considerations into our investment processes

Across BlackRock, we provide investment teams with data and insights to keep them well informed of sustainability considerations. We have integrated ESG considerations across our investment research, portfolio construction, and stewardship processes. For alpha-seeking strategies, ESG integration helps our investors incorporate material ESG information into security selection. For index strategies, where we aim to track the benchmark index, our engagement with portfolio companies is the mechanism by which we integrate sustainability insights. Our investment teams, across asset classes, partner with our ESG integration team on the data and technology necessary to enhance their incorporation of sustainability insights into their work on a daily basis.

ESG investment process integration

 


We are stewards of our clients’ assets through engagement and proxy voting

We work to protect and enhance our clients’ – the asset owners - assets, which means engaging with companies to encourage sound corporate governance and business practices that are consistent with sustainable long-term financial returns. BlackRock’s Investment Stewardship team is positioned within the firm as an investment function and is comprised of professionals across all regions, taking a local approach with companies while benefiting from global insights. The team takes an engagement-first approach where proxy voting is only one component of our process. We are committed to providing transparency into how we conduct investment stewardship activities in support of delivering long-term financial returns for our clients. Each year we publish our engagement priorities around themes that we believe will encourage sound governance practices consistent with long-term financial performance. We also publish extensive data and information about our proxy voting and engagement activities.

Investment stewardship

BlackRock Investment Stewardship 2019 Priority Themes:

  • Governance: Quality leadership is essential to performance. Hence, board composition, effectiveness, diversity and accountability remain a top priority.
  • Corporate strategy and capital allocation: A clear articulation of corporate strategy and capital allocation provide a clear sense of the direction a company intends to take.
  • Compensation that promotes long-termism: Executive pay policies and outcomes should link closely to long-term strategy, goals and performance.
  • Environmental risks and opportunities: Sound practices in relation to the material environmental factors inherent to a company’s business model can be a signal of operational excellence and management quality.
  • Human capital management: In a talent constrained environment, companies should focus on sound business practices that create an engaged and stable workforce.

We provide more choices through BlackRock Sustainable Investing

We have a $60 billion platform of dedicated sustainable investment solutions that align capital with certain behaviors, activities or outcomes via ESG, thematic, and impact approaches. This includes over $40 billion in clean energy investments for clients who wish to access the green and energy transition sectors. We also have $500 billion in investment solutions that eliminate exposures to certain sectors or activities through screened solutions.

Sustainable investing solutions

Exclusionary screens
Exclusionary screens
Removal of certain companies based on specific content such as business involvement, sector or controversy.
ESG
ESG
We score ESG data at the security or asset level and weight it to provide an investment solution that aligns capital with stronger ESG performance.
Thematic
Thematic
We focus on particular E, S or G issues, such as carbon emissions or the diversity of a company's workforce, and weight them in a thematic sustainable solution.
Impact
Impact
We identify a specific sustainable outcome as a goal of the investment solution, and provide dedicated progress reports against that outcome.

We advocate for public policy

In-line with our purpose of helping more people experience financial well-being, we embrace a broader set of responsibilities to advocate for public policies that increase financial market transparency, protect investors and facilitate responsible growth of capital markets for all investors. 

Public policy

 


We are a leader in
risk management

Our Aladdin technology gives us an enterprise view of BlackRock. In addition, an independent group provides risk oversight of the investment management processes, identifies and helps manage counterparty and enterprise risks, coordinates standards for firm wide investment performance measurement and determines risk management-related analytical and information requests. This includes cybersecurity and information security, where we employ an in-depth, multi-layer strategy of control programs that protect confidentiality, integrity and availability of information.

We are committed to delivering long-term financial performance

By focusing on the key elements of our business that we can control, we look to generate differentiated and sustainable organic growth, and demonstrate the benefits of scale through operating leverage while re-investing in our business for future growth. In addition, we are committed to returning excess cash to shareholders through a consistent capital management strategy.

Total return since
BlackRock’s IPO
Over the past five years, we delivered 40% in total return for shareholders. And we delivered over 3,800% since we went public in 1999.
Total return since BlackRock’s IPO

We implement effective
corporate governance

A strong corporate governance framework is critical for running a sustainable business. Our corporate governance framework is a set of principles, guidelines and practices that support consistent financial performance and long-term value creation for our shareholders.

Corporate governance

We prioritize human capital

As an asset manager, the long-term sustainability of our firm is heavily dependent on our people. We make a deliberate effort to unify culture, encourage innovation, ensure that we are developing, retaining and recruiting the best talent, align employee incentives and risk taking with those of the firm, and to incorporate inclusion and diversity into all levels of our business. We are also committed to protecting human rights, which we do through policies that seek to provide equal treatment and are dedicated to providing a safe and healthy working environment for all employees.

Human capital

We promote inclusion
and diversity

We strive to cultivate and advance diversity in all forms because we believe a wide range of perspectives and talent is crucial to creating a richer culture for our employees and better results for our diversified global client base.

Inclusion and diversity

Our commitment in action
In the UK, we disclose our gender pay gap. All organisations with 250+ employees must report their gender pay data. In our report, we outline the steps we are taking to increase the number of women in our senior-most ranks, and across the firm in general.
Our commitment in action

We support our
employees’ wellbeing

We care about our employees’ physical, emotional and financial well-being and design our benefits to support employees in all aspects of their lives. To help employees stay energized, engaged and inspired, we offer a wide range of benefits including a strong retirement plan, support for working parents and Flexible Time Off (FTO).

Rewards and benefits

We provide learning and development opportunities

We provide a wide range of opportunities for employees to grow their skills and develop in their careers. From virtual and classroom courses for all employees through to more selective leadership development programs that help us to identify and grow our leaders from within.

Learning and development

We lead with ethics & integrity

Our reputation is one of our most important assets. We hold ourselves to standards that not only meet those required by the laws and regulations that apply to us, but also to our principles, which are rooted in exceeding our clients’ expectations.

Ethics and integrity

We create positive social impact by serving our communities

We partner with nonprofits, start-ups, corporations and our employees to create impact in line with our mission to help more people achieve financial security and opportunity, whether in our own communities or on a global scale.

Social impact

We manage the environmental impact of our own operations

BlackRock recognizes that sound environmental management is central to our business, important to our employees and clients and key to securing our future. In our operations, BlackRock works to decouple company growth from environmental impact, while increasing the efficiency and resiliency of our operations.

Environmental sustainability

Environmental impact
100% renewable power usage in the US in 2018 and offsetting 100% of our 2018 global travel-related emissions – our largest source of carbon emissions – by retiring carbon credits from The Conservation Fund’s Garcia River Forest.*
Environmental impact