(Bloomberg) — BlackRock Inc. unveiled new details about how it manages $150 billion of investment funds with climate goals, signaling to investors that it plans to step up scrutiny of companies’ strategies for transitioning to a low-carbon economy.
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The world’s largest money manager will review companies’ plans to see how well they align with the goal of limiting global warming to 1.5C, Joud Abdel Majeid, head of investment management at BlackRock, said in a message to clients.
The new policy, which will take effect in the fourth quarter, will initially apply to 83 funds set up in Europe with specific climate and decarbonization goals. Similar funds in the U.S. and Asia-Pacific, as well as separate accounts managed for clients, will also be able to adopt the new guidelines, the company said.
The policy is the latest example of how BlackRock is trying to address the backlash against ESG and climate change-related investing. The fund manager has faced scrutiny from Republican politicians across the country over its stance on climate change, while environmental advocates and some Democrats have urged BlackRock to use its influence to pressure companies to reduce their emissions.
The climate policies unveiled Tuesday apply to a small fraction of BlackRock’s $10.5 trillion in assets under management as of the end of March.
“For all other funds, BlackRock will continue to fulfill its stewardship responsibilities with a sole focus on enhancing clients’ long-term financial returns, consistent with our benchmark policies,” Majeid said.
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