BlackRock backs plan to assess climate change response

The BlackRock logo can be seen outside of its headquarters in New York City, USA.

The biggest asset manager of the world has thrown its weight behind a plan to release free in-depth data on how thousands of companies are adapting to a low-carbon economy.

Ahead of the COP 26 world climate talks in Glasgow, BlackRock said it backed a plan to scale up the Transition Pathway Initiative, an asset-owner project set up in 2017 that aims to assess companies' response to climate change.

The move comes as more global investors make their own pledges to net-zero carbon emissions across their portfolios - a commitment that requires in-depth analysis of the disparate climate plans of the companies in which they invest.

Under the plan, the number of companies assessed by TIP will jump to 10,000 from 400, through the creation of a TPI Global Climate Transition Centre at London School of Economics and Political Science.

Further, as well as expanding worldwide equity market coverage, the initiative will also cover corporate debt and government bonds.

This TPI Centre will underpin the global climate transition directly empowering investors to take action and judge climate performance through the same lens, said TPI Chair Adam Matthews.

It will be a critical component of the Glasgow COP financial infrastructure, which will enable investors to deliver on their commitments. Matthews said.

The inclusion of BlackRock brings the number of asset managers and investors backing the TPI to 110 with combined assets worth $40 billion.

We consistently hear from investors around the world on the need for valuable data to inform decision making, and so we are pleased to support TPI as it scales its analysis to provide valuable input, said Sandy Boss, global head of BlackRock Investment Stewardship.