BlackRock gives choice to clients investing in a low-carbon transition

illuminem summarizes for you the essential news of the day. Read the full piece on Forbes or enjoy below:

🗞️ Driving the news: BlackRock, facing criticism from both political extremes, is offering clients a choice in their investment strategies to navigate the low-carbon transition
• The asset manager aims to balance fiduciary duty with varying client preferences regarding fossil fuels and sustainability

🔭 The context: Despite accusations from red states of boycotting fossil fuels and from environmental groups of insufficient action on climate change, BlackRock remains a major shareholder in top U.S. oil and gas companies
• BlackRock emphasizes its role is to earn the best risk-adjusted returns for clients, not to drive industrial policy

🌍 Why it matters for the planet: BlackRock’s approach allows clients to choose how their investments align with their views on the energy transition, impacting the broader push towards sustainability
• This flexibility can influence corporate strategies on climate action based on investor demand

⏭️ What's next: BlackRock’s new Climate and Decarbonization Stewardship Guidelines cater to European clients with stringent sustainability goals
• U.S. clients, especially those from states opposing ESG, might request similar tailored guidelines reflecting their priorities

💬 One quote: "We care about how companies are navigating the energy transition because that can have significant implications for their business models and value," said Sandy Boss, BlackRock’s then Chief Operating Officer for Global Client Business

📈One stat: BlackRock manages an estimated $10.65 trillion in assets as of June 30, 2024

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