BlackRock – PI Partnership


GLOSSARY


TCFD – Task Force on Climate- related Financial Disclosure


IIGCC – Institutional Investors Group on Climate Change


CDSB – Climate Disclosure Stand- ards Board GRI – Global Reporting Initiative


IIRC - International Integrated Re- porting Council


SASB – Sustainability Accounting Standards Board


of efforts, coupled with regulatory action such as the EU’s Non-Financial Directives which come into effect in 2021, will lead to better reporting and data for both investors


and consumers informed decisions.


4. Sustainability may go global. Sustaina- ble investing has often been referred to as a European phenomenon, but 2020 has shown us that investors and governments in North America and Asia are beginning to take bold action, especially on the topic of climate change. Institutional investors in California and New York have become quite vocal in calling on high fossil-fuel emitters to change their practices and the ambitious climate plans laid out by the Biden administration will be one to watch


to make


very closely. Bold commitments from the US, in addition to those already laid out by China, the UK, and the European Un- ion may very well correct the path towards limiting temperature rise to below 1.5 degrees by 2050.


5. From shareholder capitalism to stake- holder capitalism. According to the 2020 Edelman Trust Barometer survey, 87% of people believe that stakeholders, not shareholders, are most important to com- panies’ long-term success⁷. The COVID-19 crisis has shed even greater light on this, with BlackRock research showing that strong companies with a record of good customer relations or robust corporate culture have demonstrated resilient financial performance⁸.


Companies themselves are


starting


to


agree. In 2019, 181 CEOs of the Business Roundtable signed a new Statement on Purpose of a Corporation, committing to deliver value to all stakeholders – custom- ers, employees, suppliers, communities and shareholders.


While 2020 tested many companies on how they care for and deliver value to all their stakeholders, we’ll be watching to see how they build their strategic recovery plans in 2021 in a way that builds on this effort for the long-term.


Capital at risk. The value of investments and the income from them can fall as well as rise and are not guaranteed. Investors may not get back the amount originally invested. BlackRock has not considered the suitability of any investment against your individual needs and risk tolerance. Past performance is not a reliable indicator of current or future results and should not be the sole factor of consideration when selecting a product or strategy. This information should not be relied upon as research, investment advice, or a recommendation regarding any products, strategies, or any security in particular. This is for illustrative and informational purposes and is subject to change. It has not been approved by any regulatory authority or securities regulator. All figures are from BlackRock as of December 2020. 1447247


Sources: 1) BlackRock Sustainable Investing, September 30, 2020 with data from Broadridge and Simfund. 2) BlackRock 2020 Global Sustainable Investing Survey, November 2020. 3) The Portfolio Alignment Team of the TCFD released the report, Measuring Portfolio Alignment, in November 2020. 4) IIGCC their Net Zero Investment Framework for consultation in August 2020. 5) The Net Zero Asset Owners Alliance released their position on thermal coal in November 2020. 6) Statement of Intent to Work Together Towards Comprehensive Corporate Reporting, September 2020. 7) 2020 Edelman Trust Barometer Report, January 2020. 8) BlackRock Sustainable In- vesting, Sustainable Investing: Resilience amid uncertainty, May 2020.


Issue 99 | December–January 2021 | portfolio institutional | 47


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