The energy transition is more and more a reality and then we must also understand how to invest in it. We try to give an answer BlackRock than in a letter to customers, with the signature of the vice president on his head Philipp Hildebrand and Mark Wiedman (who is at the helm of the International and of Corporate Strategy) examines the topic to help them face, guide and give life to the net zero transition.
A few days ago a letter in the usual letter of the beginning of the year to the CEO, Larry FinkCEO of Blackrock, spoke on the issue of employee remuneration.
In our opinion – reads the letter to customers – all investors should certainly prepare to face the energy transition successfully, since it is inevitable. However, we hear more and more customers wanting not only to understand how the transition will evolve in the future and adjust their portfolios accordingly, but also to help actively drive the transition, positioning themselves to benefit from it while accelerating its progress.
Energy transition, the advice
The giant of funds points out that the transition is a process that will take place over the course of many years.
“The global economy – reads the letter to customers – will continue to rely on fossil fuels, while emission-intensive sectors such as electricity, industry and transport go through the process of decarbonisation. Some incumbents will be ousted by new ones more agile technologies or startups, others will lose ground to competitors ahead of them in decarbonisation.
But many other incumbents are bound to thrive, offering our clients significant investment opportunities, and the decarbonisation programs implemented by these companies will play a key role in an orderly transition. Many of these technologies already exist but are not yet economically competitive: green hydrogencarbon capture, green cement, sustainable aviation fuels and so on. Capital is needed to develop new technologies on a commercial scale and invent others, and many have declared that this area is one of the most stimulating investment opportunities of the next decades ”.
The US giant further explains, “the capital markets are already directing financial flows towards companies with “green” business models”- such as producers of renewable energies, suppliers of technologies for electric mobility or companies focused on solutions based on the use of natural resources. In our view, there is an undervalued opportunity for investors looking to drive the transition: to identify the high-carbon companies that are taking action to drive the transition. decarbonization in their respective sectors “.
BlackRock aims to become a leader in net zero investments
Hence the investment company’s commitment to be among “the world’s leading experts and consultants in the investment sector in the net zero transition”.
But also to offer customers “the most sophisticated and up-to-date analyzes and the deepest understanding of how the transition will unfold. We are also committed to helping you select the right investment options for you and your stakeholders. For us – concludes BlackRock – it will be an honor to collaborate with you to successfully face, guide and give life to this real economic-financial transformation.