BlackRock introduces climate policies for $150b in funds

BlackRock Inc., the world’s largest asset manager, has announced new measures to enhance the management of $150 billion in investment funds focused on climate objectives.

Starting in the fourth quarter, BlackRock will scrutinise corporate strategies for transitioning to a low-carbon economy, aligning with the goal of limiting global warming to 1.5°C, according to Joud Abdel Majeid, head of investment stewardship at BlackRock.

This new policy will initially apply to 83 climate-focused funds in Europe and may extend to similar funds in the US and Asia-Pacific, as well as to separate client accounts.

The move comes as BlackRock navigates criticism from both sides: Republican politicians in the US oppose its climate stance, while environmentalists and some Democrats demand stronger action on corporate emissions.

These climate policies affect a small portion of BlackRock’s total assets under management, which stood at $10.5 trillion as of March. For other funds, BlackRock will continue to prioritise clients’ long-term financial returns in accordance with its benchmark policies, Majeid added.