BlackRock joins with Wespath to widen its low-carbon strategy | Financial Times

BlackRock has teamed up with a US client to explore fresh ways to invest in the low-carbon economy as fund management groups hunt for opportunities that arise from the shift to sustainable energy use.<P><P>The world’s largest asset manager with $6.3tn of assets, and Wespath Benefits and Investments, which manages $23bn on behalf of the United Methodist Church in the US, will use a passive investment strategy to gain exposure to companies that change their business model to take advantage of the trend.Investors are paying more attention to risks linked to fossil fuels, as well as which companies stand to benefit from changes in regulation and consumer demand. Tougher environmental rules may lead to fossil fuel reserves being deemed unburnable, leading to asset writedowns.<P><P>“We’re seeing and will see a greater disruption across a wide variety of industries,” said Brian Deese, global head of sustainable investing at BlackRock and an ex-senior adviser to Barack Obama, the former US president, on energy policy and climate. “There is a long-term financial upside if you can be a transition-ready investor.”<P><P>In common with rivals including BNP Paribas and State Street Global Advisors, BlackRock already offers investors a low-carbon exchange traded fund that focuses on companies with a low-carbon footprint.<P><P>The approach with Wespath is more futuristic, involving investment in companies that do more with regard to low-carbon energy. This includes those that invest in renewable energy, find ways to use less water or other resources, and make more efficient use of technology.

Source: BlackRock joins with Wespath to widen its low-carbon strategy | Financial Times

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