Scottish Widows Invests $2.6Bln in BlackRock's Climate Fund
August 05 2020 - 7:33AM
Dow Jones News
By Maitane Sardon
BlackRock Inc. said Wednesday that Scottish Widows, a U.K.
pension provider, has allocated 2 billion pounds ($2.6 billion) of
its pension portfolios to its new low-carbon fund.
The asset manager said it has launched a new ESG fund as part of
its goal to help clients build sustainability into their
portfolios. In January, BlackRock said it would put sustainability
at the center of its investment strategy.
BlackRock said the Climate Transition World Equity Fund invests
in companies that are "well prepared" for the transition to a
low-carbon economy and has less exposure to companies that are
"less equipped."
The fund will use a five-pillar framework looking at risks and
opportunities in energy production, clean technology and management
of energy, waste and water. BlackRock will score companies based on
their management of the five pillars relative to other companies in
the sector.
The fund won't invest in controversial and nuclear weapons and
companies that breach the UN Global Compact. It will also exclude
companies generating more than 5% of their revenues from tar sands,
thermal coal or civilian firearms.
The asset manager said the fund launch reflects investors'
growing demand for investment tools that incorporate assessments of
climate change-related risks and opportunities.
Maria Nazarova-Doyle, head of pension investments at Scottish
Widows, said offering customers more sustainable investment choices
for their pension portfolios and challenging companies to behave
more sustainably and responsibly is a central part of the pension
provider's strategy.
Write to Maitane Sardon at maitane.sardon@wsj.com
(END) Dow Jones Newswires
August 05, 2020 07:18 ET (11:18 GMT)
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