Impact Investing Draws BlackRock into the Game
The latest move by a mainstream investment firm into impact investing is being made by BlackRock. The company is preparing to launch BlackRock Impact to coordinate existing offerings that guide investment in products with environmental and social goals and to introduce new products, according to Reuters. BlackRock Impact joins initiatives at Goldman Sachs and Bank of America’s Merrill Lynch division in funding social impact bonds that address a specific need while earning returns for investors. BlackRock already manages $220 billion in values based mandates, which use screens to exclude securities based on clients’ values. In December, BlackRock launched a suite of ESG-related products with the iShares MSCI ACWI Low Carbon Target Exchange-traded Fund. BlackRock’s new effort is the latest exhibit in a growing file of investment evidence that proves values can produce value.
John Howell, Editorial Director