SUSTAINABLE & TRANSITION INVESTING

Our range of sustainable and transition investing solutions

Align your portfolio to your goals with a range of index, active, cash, private markets and whole portfolio solutions. Choose from broad exposure to more tactical investments in sustainable and transition themes to transition-focused infrastructure.

Finding products that align to your goals

We offer choice with the industry’s largest sustainable and transition product range.1 Navigate the tabs below to discover products and portfolio use cases that could align to your investment goals.

Capital at risk. The value of investments and the income from them can fall as well as rise and are not guaranteed. Investors may not get back the amount they originally invested.

BlackRock defines transition investing as: Investing with a focus on preparing for, being aligned to, benefitting from and/or contributing to the transition to a low-carbon economy.

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Seek exclusions
Clients seeking to exclude certain business areas while maintaining a core investment strategy.
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Focus on sustainability
Clients seeking to invest in strategies with environmental, social and/or governance objectives, themes and related considerations as a guide for selecting investments.
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Navigate the low-carbon transition
Clients looking to allocate to the opportunities that arise in the shift to the low carbon transition or who have set climate targets.
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Prioritise impact
Clients aiming to achieve positive, measurable environmental or social outcomes alongside financial returns.
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Seek exclusions

Asset allocation approach:

Broad

  • For clients looking to avoid investments in certain business activities while maintaining similar risk and return characteristics to traditional benchmarks.

Our active management capabilities

We help our clients align their whole portfolios to their investment objectives.

  • • With a focus on alpha generation and risk management, the Fundamental Fixed Income team uses top-down views from lead portfolio managers and bottom-up expertise from our sector specialists to build fixed income portfolios that aim to drive consistent alpha. 

    • BlackRock’s PEXT/NEXT™ Externalities Profiler3 enables sustainable investing across the fixed income universe. The profiler is built using sector-specific methodologies to allow for easy portfolio construction and reporting. 

    • We use multiple ESG vendor datasets, public climate datasets and internal datasets for enriched coverage across fixed income markets including privates, securitised, municipals, etc.

  • • Fundamental equity investors use deep research and insights of their regions, sectors and companies to assemble a concentrated, yet balanced portfolio of stocks aiming to deliver alpha.

    • Through bottom-up expert insights, the teams build portfolios company-by-company, assessing the core merits of individual businesses to gain a thorough understanding of their long-term potential.

    • The goal: outperform the market by constructing concentrated, yet diversified portfolios of fundamentally sound businesses at the right valuations.

  • • Systematic investing emphasises data-driven insights, scientific testing of investment ideas and advanced computer modelling techniques to generate consistent, differentiated alpha.

    • When it comes to sustainable and transition investing, a systematic approach goes beyond tilting towards off-the-shelf environmental, societal and governance (“ESG”) scores. Our systematic strategies combine bottom-up transition insights that leverage alternative data with top-down decarbonisation targets at the whole portfolio level.

    • We believe that the ability to unlock insights from the huge volume, high velocity and diverse collection of alternative ESG data sources has advanced the sensibility around a systematic approach to sustainable investing.

  • • Multi-Asset Strategies and Solutions (MASS) draws on the toolkit of BlackRock's index, factor and alpha-seeking investment capabilities to deliver investment insights and precise investment management.

    • Our multi-asset strategies bring together BlackRock's global capabilities, utilising the best ideas from across the firm and taking into account sustainability characteristics that may impact the financial performance of portfolios.

Our private markets capabilities

Our clients can currently access sustainable and transition private markets in four ways:
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Funds
Funds with a spectrum of choice across asset classes.
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Mandates
Mandates with custom alignment to investment objectives.
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Co-investments
Co-investments with access to BlackRock origination.
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Multi-alternatives portfolio solutions
Multi-alternatives portfolio solutions with bespoke portfolio construction across internal and external funds, co-investments and secondaries.

Our indexing capabilities

Clients can use BlackRock's index strategies for a range of investment needs, including risk management, tactical adjustments and cash equitisation.
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1 Source: Morningstar, Global Sustainable Fund Flows as of 24 October 2024.
2 Source: Sustainable Investments as defined in Article 2.17 of the Sustainable Finance Disclosure Regulation (SFDR), 2019 - “investments in an economic activity that contribute to an environmental or social objective,(…) provided that such investments do not significantly harm any [other environmental or social] objectives and that the investee companies follow good governance practices…”.
3 Source: PEXT/NEXT™ is our proprietary framework for externalities - it profiles the fixed income universe to identify securities with associated positive and negative externalities, as well as those holdings warranting additional issuer engagement.