BlackRock expects 75% of corporate and government assets to be aligned to net zero by 2030

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A sign for BlackRock Inc hangs above their building in New York, U.S., July 16, 2018. REUTERS/Lucas Jackson

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  • The statement covers state-related business assets
  • Covered assets cover approximately 77% of the $10 trillion total
  • Depends on real economy development, customer’s choice

LONDON, April 14 (Reuters) – BlackRock (BLK.N) forecast on Thursday that by 2030 at least three-quarters of its investment in businesses and governments will be tied to issuers with a science-based goal of zeroing net greenhouse gas emissions by 2050. , compared to 25% currently.

It was the first time that BlackRock, the world’s largest asset manager with $10 trillion in assets, explained what its portfolio might look like in 2030 as far as emissions go, but that remains rather an expectation. than a firm goal.

The forecast covers issues related to 77% of its total assets at the end of September 2021, but excludes those such as municipal bonds for which there is currently no reliable data.

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Setting a 2030 target is a central requirement for members of the Net Zero Asset Managers Initiative (NZAMI), an industry group of fund managers aiming to achieve net zero emissions for their assets. BlackRock joined the NZAMI in March 2021

In Thursday’s statement, BlackRock avoided using the word “target,” however, reiterating instead that the pace of change would be determined by the extent of decarbonization in the real economy and customer investment decisions. .

“As the transition continues and issuers and asset owners continue to position themselves against it, we expect that by 2030, at least 75% of BlackRock’s corporate and sovereign assets managed for clients’ account will be invested in issuers with science-based objectives or equivalent,” the statement said.

The bulk of BlackRock’s assets are in funds that track stocks and other indices, often containing high-emission companies such as those in the oil and gas sector, although it is launching new climate-aligned products for customers who wish to change direction.

“BlackRock’s role in the transition is that of fiduciary to our clients. Our role is to help them manage investment risks and opportunities, not design a specific decarbonization outcome in the real economy,” said he declared.

The key to this change would be concerted political action by governments as well as technological advances to help hard-to-reduce sectors decarbonise, he added.

“Our clients’ portfolios – which mirror the global economy – cannot reach net zero without sustained and consistent government policy, accelerated technology breakthroughs, and substantial adaptation of corporate business models,” he said. .

“These portfolios will reflect the regulatory and legislative choices governments are making to balance the need for reliable, affordable energy and orderly decarbonization.”

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Reporting by Simon Jessop; Editing by David Holmes

Our standards: The Thomson Reuters Trust Principles.

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