By Simon Jessop

LONDON, (Reuters) – BlackRock (NYSE 🙂 projected Thursday that at least 35% of its investment in governments and companies will be linked to issuers with a science-based target to reduce net greenhouse gas emissions by zero by 2050. This is up 25% from the current 25%.

BlackRock was the biggest global asset manager, with assets of $10 trillion, that had to say how their portfolio might look in 2030. But it’s still an expectation, not a goal.

This forecast includes emissions that are tied to 77% or more of the total assets of the company at September 2021. However, it excludes municipal bonds which have no current reliable data.

Setting a 2030 goal is a central requirement https://www.netzeroassetmanagers.org/commitment for members of the Net Zero Asset Managers Initiative (NZAMI), a sector-wide group of money managers aiming to get to net-zero emissions across their assets. BlackRock joined NZAMI March 20, 2021

BlackRock, however, did not mention the word “target” during Thursday’s announcement. However they reiterated that the speed of change will be determined by clients’ and real-economy decarbonization decisions.

The statement stated that “As transition proceeds, issuers, and asset owners continue their position in front of it,” and predicted that at least 75% (or more) of BlackRock’s corporate and sovereign assets for clients would be invested in issues with science-based targets by 2030.

BlackRock has the largest amount of assets, mainly in stocks and other index funds. Many high-emitting companies, such as those involved in oil and gas, are included in these funds. But, BlackRock is developing new products that align with climate change for clients looking to make a shift.

“BlackRock’s role in the transition is as a fiduciary to our clients. It stated that our role was to assist clients in navigating investment risks and potentials, but not to create a decarbonization result.

It said that concerted government policy and technological advancements to decarbonize hard-to-abate industries would both be key to this change.

“Our clients’ portfolios – which reflect the global economy – cannot reach net zero without sustained and consistent government policy, accelerated technological breakthroughs, and substantial adaptation in corporate business models,” it said.

“These portfolios reflect the regulatory decisions and legislative choices that governments make in order to balance the demand for reliable and inexpensive energy and decarbonization.”