BlackRock Inc., the world’s largest money manager, has announced plans to enhance its scrutiny of companies’ strategies for transitioning to a low-carbon economy.
Managing $150 billion in investment funds with climate objectives, BlackRock will evaluate corporate plans to see how they align with the goal of limiting global warming to 1.5°C.
This new policy, shared by Joud Abdel Majeid, BlackRock’s head of investment stewardship, will be implemented in the fourth quarter and initially apply to 83 climate-focused funds in Europe having specific climate and decarbonisation objectives. Similar guidelines may extend to funds in the US and Asia-Pacific regions later.
The climate policies unveiled on Tuesday apply to a small fraction of BlackRock’s total $10.5 trillion in assets under management at the end of March.
“For all other funds, BlackRock will continue to undertake our stewardship responsibilities with a sole focus on advancing clients’ long-term financial returns in line with our benchmark policies,” Majeid said.
