BlackRock Global Impact Report 2022/23

Generating an impact on people and the planet

Given the magnitude of the world’s needs and their increased urgency, we believe impact investing has a more important role than ever. BlackRock is excited to release the Global Impact Report 2022/23, its third annual publication which exhibits impact enterprises offering solutions to the immense challenges facing our planet and society. As we look ahead, we are encouraged by the tremendous opportunity to deploy capital and strategic resources into impact investing to help solve some of the world’s great challenges as identified by the UN Sustainable Development Goals (SDGs) and Targets.

We strategically engage with companies to help enhance their impact

Part of our theory of change involves seeking ways to support and guide our investee companies so that they might deliver greater net outcomes. To this end, we help our partner companies deepen their awareness of their impact, better manage their impact outcomes, improve their data provision and transparency, increase their visibility and their narratives as impact companies, and manage such overarching issues as climate change and the transition to a lower-carbon economy. Although every company is on a unique journey, many of the issues or opportunities they face share common factors. A first engagement may be initiated at any point before or during our investment (and may even continue after we are no longer invested), with many impact engagements involving multiple stages and facets.

Engagements inform our investment decisions and can reinforce conviction about a particular investment. An engagement may prompt a decision to add to a position or might lead the team to reduce exposure or redesign its engagement approach.

Impact on people: Solutions spotlight on Palo Alto Networks

When it comes to virtual interactions, the ongoing digitization of our lives means the importance of security against cyberattacks grows daily. A recent report predicts the global cost of cybercrime will hit US$8 trillion in 2023 and grow to US$10.5 trillion by 2025.¹ Palo Alto Networks is a multinational cybersecurity company. Its core product is a platform that includes advanced firewalls and cloud-based offerings. The company prepares enterprises, organizations, service providers and government entities to protect themselves against today’s most sophisticated cyber threats. This is done by delivering value in five fundamental areas: Network Security, Secure Access Service Edge, Cloud Security, Security Operations, and Threat Intelligence and Security Consulting. Its cybersecurity platforms and services help secure enterprise users, networks, clouds, and endpoints by delivering comprehensive cybersecurity powered by leading artificial intelligence (AI) and automation.² Their software also helps secure the growing legions of remote and hybrid workers after the pandemic.

Impact on the planet: Solutions spotlight on Trimble

Although no human being can survive without proper nutrition, food scarcity and limited access to clean water continue to be an everyday challenge for many, especially in developing regions. Almost one in 10 people globally are undernourished, and more than 3 billion can’t afford a healthy diet, according to the Food and Agriculture Organization (FAO).³ In addition, since 2020, the sharp increase in global consumer food prices has translated directly into the increased average cost of a healthy diet everywhere.⁴ Trimble is a U.S.-based software, hardware and services technology company supporting agriculture industries worldwide, among other sectors. The company provides advanced software such as automation equipment and operating systems for agricultural machinery. Its products allow for a more efficient farming process – which ultimately helps make food production more sustainable – because they help automate historically labor-intensive farming activities.