INSIGHTS

Global perspectives on investing in the low-carbon transition

Find out institutional investors’ needs and preferences related to investing in the low-carbon transition. 200 institutional investors globally have shared their insights and perspectives, helping us to identify four key themes which we explore in the report.​

A diverse set of client perspectives from across the globe

The transition to a low-carbon economy is among a handful of major structural shifts that we see rewiring economies, sectors, and businesses. 

To help inform the choices BlackRock offers our clients, in June 2023 we commissioned iResearch Services,1 an independent third-party research consultancy, to conduct a market survey on our behalf.

institutional investors
Institutional investors
present in more than 15 countries
Countries
trillion us
U.S. dollars of AUM represented

Regional breakdown for 200 respondents

The survey polled 200 institutions around the globe. Their sizes and geographies varied widely.1

regional breakdown for 200 respondents

 

 

Four key themes emerged

The results offered a lens into how institutional investors globally are thinking about investing in the low-carbon transition.

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Low-carbon transition as an investment priority

56% of investors who took this survey indicated that they plan to increase transition allocations in the next 1-3 years, and 46% said navigating the transition is their most important investment priority in the next 1-3 years.​

Q | How important is the transition to a low-carbon economy in creating opportunities and risks for your portfolio?

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A mix of approaches

Globally, the majority - 56% - of respondents indicated a preference for a whole portfolio approach to transition investing, while 41% expressed a preference for an asset-class-by-asset-class approach.

Q | If you're planning to increase your allocation to transition strategies, is the increase at an asset class level or on a whole portfolio basis?2

A mix of approaches

Whole portfolio, fixed income, KPIs3, and performance

Respondents expressed that there are some product offering gaps (e.g., whole portfolio approach, emerging markets, fixed income), as well as other challenges with transition allocations (e.g., tracking KPIs).

Q | Where do you wish to see more transition and sustainable investing products available?4

portfolio spotlight

Managers' research and deal access are key

When it comes to selecting a transition partner, institutional investors are looking for an asset manager with strong research capabilities, access to proprietary deals, and performance track record.

Q | What are the most important considerations when selecting your transition investing manager? Please rank up to 3 responses.5

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For additional survey results, please download the key insights, available below.

Download survey insights

Clients are increasingly asking BlackRock how to mitigate risks to their portfolios, and capture investment opportunities associated with climate and the low-carbon transition. As a fiduciary, we invest on our clients’ behalf to help them meet their investment objectives. Our investment approach is informed by three principals: we provide choice, we seek the best risk-adjusted returns with the mandates clients give us and we underpin our work with research, data and analytics.

Learn more about our approach

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