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Sustainability as Our Standard Offering in Solutions – BlackRock manages a wide variety of investment solutions that combine different funds to help investors achieve their investment objectives.

And with the impact of sustainability on investment returns increasing, we believe that sustainable investment will be a critical foundation for client portfolios going forward. Our investment conviction is that sustainability-integrated portfolios can provide better risk-adjusted returns to investors. Resilient and well-constructed portfolios are essential to achieving long-term investment goals. Sustainable, Resilient, and Transparent Portfolios We are now accelerating those efforts in the following ways. Over the past several years, we have been deepening the integration of sustainability into technology, risk management, and product choice across BlackRock. We believe that sustainability should be our new standard for investing. Because sustainable investment options have the potential to offer clients better outcomes, we are making sustainability integral to the way BlackRock manages risk, constructs portfolios, designs products, and engages with companies.

As Larry Fink writes in his 2020 letter to CEOs, the investment risks presented by climate change are set to accelerate a significant reallocation of capital, which will in turn have a profound impact on the pricing of risk and assets around the world.Īs your fiduciary, BlackRock is committed to helping you navigate this transition and build more resilient portfolios, including striving for more stable and higher long-term returns. The most significant of these factors today relates to climate change, not only in terms of the physical risk associated with rising global temperatures, but also transition risk – namely, how the global transition to a low-carbon economy could affect a company’s long-term profitability.

This shift has been driven by an increased understanding of how sustainability-related factors can affect economic growth, asset values, and financial markets as a whole.

Over the past few years, more and more of our clients have focused on the impact of sustainability on their portfolios. As those needs have evolved, so too has our approach, but it has always been grounded in our fiduciary commitment to you. Since BlackRock’s founding in 1988, we have worked to anticipate our clients’ needs to help you manage risk and achieve your investment goals.