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BlackRock: “Sustainable assets will outperform non-sustainable assets over the long term”
10/22/2021 Since 1 month

According to BlackRock, the transition to a net zero global economy by 2050 requires capital investments estimated at between 50 and 100 trillion dollars, and will have significant implications on asset prices, creating new investment opportunities and risks. BlackRock recently announced the publication of a research paper called “Seeking outperformance through sustainable insights,” which focuses primarily on the uses of sustainable data and emerging research to identify companies that may be able to balance opportunity and risk, and thereby potentially outperform, amid the shift toward a more sustainable economy.

In BlackRock opinion, sustainable assets will outperform non-sustainable assets over the long term. The authors stated that sustainability affects investment returns through three interrelated channels:

• the “tectonic shift” in investor preferences that drives investment flows into sustainable assets and reduces sustainable firms’ cost of capital

• the use of innovative data sources and fundamental research to help identify sustainable business practices and business models that could lead to excess returns compared with the broader market

• the evolving relationship between sustainability and traditional style factor investing

BlackRock manages more than 400 billion dollars on its sustainable investment platform and has set a goal of increasing it to 1 trillion dollars in the next 10 years.

This post is also available in: Spanish

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