BlackRock has launched a new UK-domiciled fund focused on investing in companies involved in materials essential for the low-carbon transition, particularly those whose supply chains require decarbonisation.
The BlackRock BFM Brown to Green Materials Fund will focus on sectors such as metals, mining, cement, chemicals, steel, and construction materials. In addition, the fund aims to invest in companies committed to decarbonisation and environmental sustainability. To ensure this, at least 70% of its assets will be invested in equities that align with the fund’s sustainability objective.
The fund adopts the ‘Sustainability Improvers’ label under the UK’s Sustainable Fund Disclosure regime, qualifying for this designation by targeting companies with the potential to improve their sustainability over time.
This UK-domiciled fund builds on BlackRock’s similar strategy in Europe, the BGF Brown to Green Materials Fund, which launched in June 2023 and has since grown to $78 million in assets. According to the US asset manager, 88% of the fund’s portfolio is invested in companies making significant progress in emissions reduction.
