Let's talk about how
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 originally invested.
Understanding the how
Clients are increasingly asking BlackRock how to mitigate investment risks and capture opportunities associated with sustainability and the transition to a low-carbon economy.
Find your path with BlackRock
Clients face many challenges related to sustainable & transition investing, including distilling large volumes of data and information, navigating a changing landscape, and finding the right investment products and solutions to meet their needs.
BlackRock is here to listen to our clients’ goals, share insights, and offer investment choices.
How to navigate sustainable & transition investing with BlackRock
A whole portfolio approach to sustainability and the transition to a low-carbon economy
As the portfolio construction partner to our clients, we can help them incorporate sustainability considerations consistent with their investment objectives, and adapt and prepare their portfolio for the transition to a low-carbon economy.
We can help clients navigate every step of their journey from helping them understand their starting point, to evaluating and selecting metrics, to choosing an investment solution, and measuring progress through reporting.
Finding the starting point
First, we spend time with them to understand what their starting point is. Clients may be at different stages of integrating climate considerations into their portfolios; our first priority is assessing their portfolio, both in terms of sustainability and financial characteristics.
We do this by using BlackRock’s proprietary risk analytics, alongside multiple datapoints and metrics to x-ray the portfolio and assess the starting position. We help clients evaluate and select from multiple decarbonization frameworks, such as the Science-Based Target Initiative (SBTi).
Identifying the right path
We then help clients define where they choose to go. We discuss how to design a whole portfolio strategy that aims to improve sustainability metrics, including climate metrics, while meeting the client’s broader portfolio objectives.
Implementing the solution
Finally, we can propose implementation options that span asset classes and product types – including both pooled vehicles and custom SMAs. We can partner with clients to conduct regular whole portfolio reviews and help they monitor progress against your targets.
Risk: While proprietary technology platforms may help manage risk, risk cannot be eliminated.
How to best access, interpret and use data and analytics
Using a variety of sustainability data sources has become commonplace, but managing multiple data points is a challenge. Translating data into investment terms requires deep risk-management expertise.
BlackRock has a long history of leading financial modelling and risk-management capabilities - rooted in our ability to efficiently and quickly process large quantities of data. Our global team of investment and sector specialists, climate scientists, data analysts, engineers, and geologists drive our research and technology platform to deliver unique insights to clients.
Leveraging our shared investment research platform and the power of Aladdin, we are developing analytical tools to help clients understand the risks and opportunities of sustainable investing, model potential outcomes of the low-carbon transition, and assess impacts on portfolios.
BlackRock Investment Institute Transition Scenario
Our transition models give clients proprietary insights into how the transition will impact sectors, assets, and portfolios.
Climate risk models and analysis
Our customized climate and net zero alignment analytics help investors understand, manage, and report on climate risk, as an integrated part of their investment management processes. These are powered in part through our partnerships with ClarityAI, Rhodium, and Baringa.1
BlackRock Sustainable Investing Intelligence™
Powering investment strategies with proprietary, forward-looking assessment of issuers.
Proprietary research & briefings
Our dedicated Sustainable Investment Research & Analytics team publishes proprietary research on topics affecting clients and holds regular briefings on market trends.
Aladdin Climate
Helps measure risks and opportunities associated with climate change and the transition across scenarios.2
1 In June 2021, BlackRock and Baringa Partners announced a long-term partnership focused on innovation and ongoing co-development of transition risk models. BlackRock has a minority investment in Clarity AI BlackRock acquired Baringa's Climate Change Scenario Model. BlackRock has also acquired models from established a partnership with Rhodium Group on Physical Risk. Source: BlackRock, May 2023.
2 Available to existing Aladdin® clients only.
Explore our investment platform that enables client choice
We provide choice to meet their needs through our Sustainable & Transition Investing Investment platforms.
BlackRock’s Sustainable Investing Platform
Our clients look to BlackRock to meet their needs. We give clients a choice of offerings to achieve their goals - from products with improved sustainability characteristics* vs. a benchmark, to investments designed to achieve positive, measurable impact.
Using BlackRock’s Sustainable Investing Platform, clients can navigate BlackRock funds across asset classes that align with their sustainable investing goals. This platform groups all BlackRock products according to four sustainable approaches, helping clients choose from a full range of building blocks. At BlackRock, we have designed a sustainable platform offering, single, and multi-theme, solutions across all asset classes.
*Sustainability characteristics can be viewed on the product screener when products are selected in the data view or individually on each product page.
A leading provider of sustainable investing solutions
- Among the largest sustainable ETF offerings1
- One of the industry’s first environmentally focused cash management strategies2
- A large dedicated renewable platform with over a decade of experience3
Visit the product screener to view the funds.
1 Source: Morningstar as of 12/31/2022. Based on 228 sustainable ETFs as defined by Morningstar to have a sustainability focus. This includes funds classified as ESG integration, impact, and sector funds. BlackRock manages 11 of the top 19 ETFs by AUM globally.
2 Source: BlackRock, March 2023. In Cash Management we launched one of the industry’s first environmentally focused cash management strategy – LEAF.
3 Source: BlackRock, March 2023. We were a first mover in renewable power, launching our Climate Infrastructure (formerly Global Renewable Power) franchise in 2012. The firm now manages dedicated renewable power platform with $9+ billion in client assets (Source: BlackRock June 2023).
BlackRock’s Transition Investing Platform
Our transition investing platform offers a breadth of offerings to meet client needs, and is powered by our proprietary research, global scale, and specialists across the firm. The platform offers breadth across asset classes, including exposures across index, active and private markets exposures.
Clients are asking for BlackRock's help
of global institutional investors expect to increase their allocations to transition strategies over the next 1-3 years, based on our 2023 survey.
Source: BlackRock iResearch Services global survey, sample size n=200, May-June 2023. Survey covered institutional investors’ attitudes, approaches, barriers and opportunities regarding transition investing.
A leading provider of transition investing solutions
- Allocated $1B in EV charging infrastructure worldwide as a private investor4
- Invested in a large carbon capture & storage pipeline project
- Awarded Global Energy Transition Investor of the Year by Infrastructure Investor in 20235
4 Source: BlackRock, March 2023.
5 The Infrastructure Investor awards honour the sector’s managers, investors, and advisers who have excelled in their respective fields globally.
