BlackRock outlined new tools and investment strategies it will create to help clients navigate the net-zero transition in a client letter Thursday obtained by Pensions & Investments.
The letter was sent to clients who have expressed an interest in how they can best invest during the transition, confirmed Matt Kobussen, a BlackRock spokesman, in an email.
The firm said it has received a range of questions about the transition from investors and its intention for the new capabilities is to help clients “navigate, drive and invent this economic and financial transformation.”
“Today there is a significant degree of uncertainty about the transition. The issue, however, no longer is whether the net zero transition will happen but how and what that means for your portfolio,” the letter said.
BlackRock will rely on its risk-management system, Aladdin, to build “the industry’s clearest map of how the transition is likely to unfold across technologies, sectors and regions.” The firm also will create the BlackRock Transition Scenario, which will provide portfolio managers and clients with access to analytical and modeling capabilities to help them navigate the transition period.
Other tools available to investors will include BlackRock Sustainable Investing Intelligence, a framework that helps to identify companies “best prepared to mitigate risks and capture opportunities associated with the transition,” the letter said.
BlackRock pledged that this year it will create “more strategies to enable investors to green the core of their portfolios by accessing climate-aware-broad-market exposures”; will create new fundamental and systematic strategies; and will “continue to expand our iShares strategies to include climate benchmarks.”
The firm’s outsourced CIO and portfolio consulting units will be expanded to “incorporate climate transition analytics and allow for greater customization to enable our clients to achieve their unique sustainability objectives,” according to the letter.
BlackRock also will create an internal transition finance internal hub for strategies related to the net-zero transition, including an incubator for new investment strategies.
BlackRock concluded the letter by saying, “We are committed to being the world’s leading advisor and expert on investing in the net-zero transition.”
BlackRock had $10.01 trillion in assets under management as of Dec. 31.