BlackRock has written to clients outlining how it will help them invest sustainably, including through new tools and a framework.
According to the $10trn asset manager, it intends to establish a hub for its efforts on transition finance, including select strategies related to net zero transition, an incubator for new investment strategies, and a forum to connect companies and aid understanding about the best investment opportunities in the space.
The firm has said that in 2022, it will provide transition tools, analytics and portfolio advice, such as the BlackRock Transition Scenario and BlackRock Sustainable Investing Intelligence, with the latter aiming to help identify companies best positioned to navigate the transition.
BlackRock will also be offering clients a new framework - Navigate, Drive, Invent - intended to help them invest in the transition correctly.
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"Today there is a significant degree of uncertainty about the transition," the letter said.
"The issue, however, is no longer whether the net zero transition will happen but how - and what that means for your portfolio. Our focus on understanding the how of the net zero transition is driven, as always, by our role as a fiduciary."
"It is based on our abiding conviction that long-term investors must consider the implications on their portfolios of both physical climate risk and the transition to net zero in the real economy, and that by taking these factors into account, they can more effectively manage risk, seize new investment opportunities, and achieve better long term returns."
New research from the BlackRock Investment Institute (BII) titled managing the net zero transition, delves further into how the transition is unfolding and how companies should be mindful of the physical risks associated with climate but also how the transition will impact on portfolios.
