Sustainability at BlackRock

Innovation on the road to net zero

We’re committed to helping more and more people experience financial well-being, and we believe the transition to a net zero economy by 2050 is a big part of that ambition. That’s why we’re dedicated to advancing climate innovation, research and analytics – to help our clients invest sustainably and build a net zero economy that serves us all.

Capital at risk. All financial investments involve an element of risk. Therefore, the value of the investment and the income from it will vary and the initial investment amount cannot be guaranteed.

Today, the world emits about 60 gigatons of greenhouse gas a year to power the economy and our lives.

 

So, think the food we eat, how we get places, where we work, how we live.

 

We can’t turn all of that off overnight but we can take steps to get on a path to a net zero world.

 

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Title: The net zero economy is arriving

 

Net zero is about reducing greenhouse gas emissions so that over time we can achieve an overall balance between emissions produced, and the emissions removed from the overall atmosphere. So, for every ton of greenhouse gas we emit into the air, we would take a ton out.

(Graphic text: Net zero = Greenhouse gas emissions produced ≤ emissions remove)

 

(Graphic/text animation) The latest science shows that if we reach net zero by midcentury, essentially if we achieve the goals outlined in the Paris Agreement, it would limit global warming to well below 2°C versus pre-industrial levels.* If we exceed that level, scientists say that we’ll suffer from the most detrimental climate impact.

*Source: Climate Council, “What does net zero emissions mean?,” 2020

 

(Graphic/ text animation)

To date, 127 governments around the world and over 1,000 companies have made or are preparing to make  net zero commitments.  And we expect that number to go up.

*Source: Climate Action Tracker, “Warming Projections Global Update” December 2020 and UN News, “UN chief stresses need for greater speed to achieve carbon neutrality,” November 9, 2020

 

This is also being reflected in the financial system. Regulators are making climate risk disclosure mandatory, central banks are stress testing for climate risk, and policymakers around the world are collaborating to achieve common climate goals.

 

Climate change is a collective problem that requires collective global action. People have to understand that achieving net zero in 2050 isn’t something we can start in 2049, we have to start today.

 

Lastly, and most importantly, as with any transition, we have to make sure it’s a just transition. We really have to work together to make sure that no one group, whether it’s a community or an industry gets disproportionately left behind.

 

The bottom line is that achieving global net zero emissions by 2050 is our best chance at mitigating the worst impacts of climate change. // This is going to a large structural change in our economy. // And companies that manage to evolve and adapt their business models are going to be rewarded by the financial markets over the long term.

What is net zero?

Watch our recent video featuring Jessica Tan, Head of Corporate Strategy, and read our new guide to learn more about the net zero transition.

Why it matters

Climate risk is investment risk
Our responsibility to help clients navigate this change impacts everything we do, from managing portfolios to building products to engaging with other companies.
The net zero economy is arriving
This is a historic opportunity to invest in climate innovation, and we believe companies who evolve will be rewarded by financial markets over the long term.
People and planet can prosper together
Reducing environmental damage while boosting innovation enables us to build a more just, inclusive world – one where more and more people can prosper.

How do we advance sustainability at BlackRock?

By developing expert research and insights

In our products, technology, and transition

Through our engagements with other companies

Through our business and our people