BlackRock Introduces Climate-Aligned Screening Tool

BlackRock Introduces Climate-Aligned Screening Tool

Nathalie Leclerc
1 min read

BlackRock Introduces New Climate Screening Tool for European Funds

BlackRock, the world's largest money manager, is set to implement a new screening tool for 83 funds in Europe, amounting to $150 billion in assets. The tool aims to ensure these funds align with stringent climate goals, reflecting a response to increasing client interest in mitigating financial risks and harnessing opportunities linked to the shift towards a low-carbon economy.

Despite encountering opposition from Republican politicians over its climate stance, BlackRock continues to lead in ESG investing. The firm faces pressure from environmental advocates and some Democrats to exert more influence on companies regarding emissions. The new policy, which applies to a small portion of BlackRock's $10.5 trillion in assets under management, emphasizes an evaluation of financial performance and decarbonization goals, including Scope 3 emissions and alignment with a 1.5°C global warming limit.

Key Takeaways

  • BlackRock targeting $150 billion in funds to adhere to stricter climate alignment, affecting 83 European funds initially, with potential expansion to the US and Asia-Pacific.
  • Emphasis on minimizing climate-related financial risks and maximizing opportunities.
  • New policy includes comprehensive greenhouse-gas emissions assessment, balancing financial performance with decarbonization goals, effective Q4 2024.


BlackRock's endeavor to align $150 billion in European funds with stringent climate goals signifies a broader trend towards sustainable investing. While driven by client demand and regulatory pressure, this move could lead to global market changes and influence other asset managers. It may prompt short-term portfolio reshuffling and increased scrutiny of Scope 3 emissions, positioning BlackRock to leverage the low-carbon transition, potentially reshaping investment strategies globally. Furthermore, the potential expansion of this policy to the US and Asia-Pacific could deepen discussions on ESG integration and its economic implications.

Did You Know?

  • ESG Investing:
    • Explanation: ESG, or Environmental, Social, and Governance, investing refers to the practice of integrating environmental, social, and governance factors into investment decisions to manage risk and generate sustainable, long-term returns.
  • Scope 3 Emissions:
    • Explanation: Scope 3 emissions encompass greenhouse gas emissions occurring in a company's value chain, including both upstream and downstream emissions.
  • 1.5°C Global Warming Limit:
    • Explanation: This refers to the target of limiting the increase in global average temperature to 1.5 degrees Celsius above pre-industrial levels, as agreed upon in the Paris Agreement.

You May Also Like

This article is submitted by our user under the News Submission Rules and Guidelines. The cover photo is computer generated art for illustrative purposes only; not indicative of factual content. If you believe this article infringes upon copyright rights, please do not hesitate to report it by sending an email to us. Your vigilance and cooperation are invaluable in helping us maintain a respectful and legally compliant community.

Subscribe to our Newsletter

Get the latest in enterprise business and tech with exclusive peeks at our new offerings