BlackRock has created a unit within the company focused on the energy transition and hired McKinsey Sustainability head Dickon Pinner to lead it.
The company announced the new unit, Transition Capital, in an internal memo this week.
“The transition to a low-carbon economy presents historic investment opportunities and challenges for clients — on par with the rise of emerging markets and digitization in recent decades,” said the letter from global head of BlackRock Alternative Investors Edwin Conway and vice chair Philipp Hildebrand, who oversees sustainable investing. “We believe many hundreds of billions, even trillions of dollars per year, will be invested through the transition and we have spent the past several years becoming a global leader in transition investing to ensure our clients have the tools they need to navigate it.”
The new unit is part of BlackRock Alternatives. It will work with portfolio managers and BlackRock Capital Markets “to source and invest in proprietary transition-focused opportunities across asset classes and geographies,” the memo stated.
Further, Transition Capital will help design new investment strategies and funds, working alongside BlackRock Sustainable and Transition Solutions.
Pinner will report to Conway and Hildebrand, according to the memo.
At McKinsey, Pinner led the company’s sustainability growth platform, which helps clients benefit from the energy transition, the BlackRock letter noted.
Six out of 10 asset owners in North America say that fighting climate change is a strategic goal for them, and more than half agreed that financial institutions have a responsibility to help reduce carbon among high emitters, according to a report Monday from Ninety One.
That investment manager surveyed 300 senior-level employees at asset owners and adviser firms globally, including pension funds, endowments, insurers, foundations, central banks, consultants and sovereign wealth funds.
A much smaller number, 17%, of asset owners in North America said that energy transition finance is among their strategies, although 60% said that they view it as “a major commercial opportunity,” Ninety One found.
This story was originally published on ESG Clarity.
Relationships are key to our business but advisors are often slow to engage in specific activities designed to foster them.
Whichever path you go down, act now while you're still in control.
Pro-bitcoin professionals, however, say the cryptocurrency has ushered in change.
“LPL has evolved significantly over the last decade and still wants to scale up,” says one industry executive.
Survey findings from the Nationwide Retirement Institute offers pearls of planning wisdom from 60- to 65-year-olds, as well as insights into concerns.
Streamline your outreach with Aidentified's AI-driven solutions
This season’s market volatility: Positioning for rate relief, income growth and the AI rebound
