As sustainability discussions are gaining traction across various sectors, Blackrock turned its focus towards green investments in Q1 2021. GlobalData’s Filing Analytics platform identified that Blackrock’s mentions of sustainability already rose by around 22% in 2021* compared to 2020. While earnings transcript discussions around sustainability rose by around five times in 2020 for companies on GlobalData’s Disruptor Intelligence Center.
Rinaldo Pereira, Senior Business Fundamentals Analyst at GlobalData, comments: “Blackrock is ready to drive investments in green companies that have long-term sustainability agendas and are not solely focused on profits. That said, profitability discussions rose by around 30% in filings of companies that mentioned sustainability (2020 versus 2019).”
Companies discussing sustainability had nearly two times more mentions of ‘Profit’ and related keywords than ‘Sustainability’ in 2020.
Interestingly, Wells Fargo & Co (Wells Fargo) and JPMorgan Chase & Co (JPMorgan) had a quarter-on-quarter decline in discussions around sustainability in Q1 2021.
Blackrock continues to maintain assets in oil and gas companies – as do JPMorgan and Wells Fargo. However, Blackrock is looking to cut investments in companies that are not involved in low carbon operations.
Pereira adds: “Divesting from oil and gas is easier said than done. Blackrock is taking it slow by prioritising sustainability discussions with companies involved in high carbon operations into low carbon transitions.”
* Q4 2020 earnings transcript released in January 2021
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