Post by account_disabled on Mar 6, 2024 3:15:14 GMT
Industry. BlackRock starts clean. Says no to thermal exposure to coal and oil sands.
US investment giant BlackRock announced yesterday that one of its fastest-growing sustainable funds will stop investing in tar sands projects, as the company steps up the integration of climate risk into its decision-making.
Machinery. BlackRock starts clean. Says no to thermal exposure to coal and oil sands.
Market-leading exchange-traded fund (ETF) provider iShares is tightening measures to block investments in palm oil, controversial weapons and lucrative prisons, the firm announced. Exclusions will now also include companies with revenue from coal and oil thermal sands, the company explained. This will come into effect from March 2.
The move is part of a shift toward Chile Mobile Number List more environmental, social and governance (ESG) funds from iShare. These types of funds, first launched in October 2018 as Sustainable Core ETFs, will now be called Aware ETFs. They will continue to operate in the same manner, tracking indices that include companies that exhibit favorable ESG characteristics.
Carolyn Weinberg, managing director and global head of product at iShares, said:
Our clients' growing preference for investing in leading ESG companies is rapidly driving an evolution in fund design and index construction. We are taking a step forward with our proposed advanced range, which will allow investors to aggressively pursue companies with strong ESG scores while avoiding those with riskier ESG business involvement, including fossil fuel reserves or thermal coal ties or oil sands.
The move is based on growing demand from clients to seek sustainable investment solutions, the company added. In 2019, $5 billion in iShares ESG ETF flows flowed into the US and show more than doubling year-over-year growth.
Armando Senra, head of Americas iShares at BlackRock, mentioned:
Sustainable investing has reached an inflection point as investors better understand the growing impact that ESG risks have on asset prices. That has translated into growing demand for iShares Sustainable ETFs and the need to offer greater variety to make sustainability our investment standard.
The move was welcomed by activists who pushed for asset managers like BlackRock to align their business practices to address rising climate risks. Amazon Watch climate and finance director Moira Birss said:
The exclusion of tar sands from sustainable funds is a clear indication that BlackRock is beginning to put its recent climate commitments into practice; however, more steps are needed. Oil and gas extraction of all kinds are destroying our climate, especially in sensitive ecosystems like the Amazon. BlackRock and other asset managers must quickly raise climate risk standards in sustainable funds, as well as across their portfolios.
The announcement is the latest move from the investment giant, which joined ClimateAction 100+ last month, after CEO Larry Fink detailed the firm's intention to place climate risk at the center of its investment decision-making. investment in his 2020 letter to CEOs.
US investment giant BlackRock announced yesterday that one of its fastest-growing sustainable funds will stop investing in tar sands projects, as the company steps up the integration of climate risk into its decision-making.
Machinery. BlackRock starts clean. Says no to thermal exposure to coal and oil sands.
Market-leading exchange-traded fund (ETF) provider iShares is tightening measures to block investments in palm oil, controversial weapons and lucrative prisons, the firm announced. Exclusions will now also include companies with revenue from coal and oil thermal sands, the company explained. This will come into effect from March 2.
The move is part of a shift toward Chile Mobile Number List more environmental, social and governance (ESG) funds from iShare. These types of funds, first launched in October 2018 as Sustainable Core ETFs, will now be called Aware ETFs. They will continue to operate in the same manner, tracking indices that include companies that exhibit favorable ESG characteristics.
Carolyn Weinberg, managing director and global head of product at iShares, said:
Our clients' growing preference for investing in leading ESG companies is rapidly driving an evolution in fund design and index construction. We are taking a step forward with our proposed advanced range, which will allow investors to aggressively pursue companies with strong ESG scores while avoiding those with riskier ESG business involvement, including fossil fuel reserves or thermal coal ties or oil sands.
The move is based on growing demand from clients to seek sustainable investment solutions, the company added. In 2019, $5 billion in iShares ESG ETF flows flowed into the US and show more than doubling year-over-year growth.
Armando Senra, head of Americas iShares at BlackRock, mentioned:
Sustainable investing has reached an inflection point as investors better understand the growing impact that ESG risks have on asset prices. That has translated into growing demand for iShares Sustainable ETFs and the need to offer greater variety to make sustainability our investment standard.
The move was welcomed by activists who pushed for asset managers like BlackRock to align their business practices to address rising climate risks. Amazon Watch climate and finance director Moira Birss said:
The exclusion of tar sands from sustainable funds is a clear indication that BlackRock is beginning to put its recent climate commitments into practice; however, more steps are needed. Oil and gas extraction of all kinds are destroying our climate, especially in sensitive ecosystems like the Amazon. BlackRock and other asset managers must quickly raise climate risk standards in sustainable funds, as well as across their portfolios.
The announcement is the latest move from the investment giant, which joined ClimateAction 100+ last month, after CEO Larry Fink detailed the firm's intention to place climate risk at the center of its investment decision-making. investment in his 2020 letter to CEOs.