BlackRock Chairman and CEO Lawrence D. Fink attended a session of the annual meeting of the World Economic Forum (WEF) in Davos, on January 23, 2020.
Singapore public investor Temasek Holdings and asset manager BlackRock will join forces to invest in private companies that use carbon reduction technologies, the companies said on Tuesday.
The partnership, called Decarbonization Partners, will launch a series of late-stage venture capital and private equity investment funds for early growth, the two companies said in a statement.
Temasek and BlackRock plan to allocate a total of $ 600 million in initial capital to invest in the funds, which would also raise money from third-party investors. The first fund aims at $ 1
“The world cannot fulfill its zero ambitions without transformational innovation,” Larry Fink, chairman and CEO of BlackRock, said in a joint statement.
“For decarbonisation solutions and technologies to transform our economy, they need to be scaled,” Fink said. “To deal with this, they need patient, well-managed capital to support their vital goals.”
He said the partnership would help define climate solutions as a stand-alone asset class that is essential to the two companies’ collective mission, as well as a “historic investment opportunity created by the net zero transition”.
BlackRock, the world’s largest money manager, is urging companies to reveal how they will survive a zero-greenhouse world.
In his annual letter to CEOs this year, Fink said better disclosure of sustainability information is in the best interests of both companies and investors.
Temasek, a leading global investor, is committed to halving emissions from its portfolio by 2030. It plans to eventually move to zero zero emissions by 2050.
“Bold, aggressive action is needed to make global zero ambition a reality,” said Dilhan Pilay, CEO of Temasek International. “Through collective efforts with like-minded people, we will be able to create
sustainable value for all our stakeholders in the long run, and investors will have the opportunity to help deliver innovative solutions on a global scale to address climate challenges. “
The decarbonisation partner funds will invest in early-stage growth companies in areas such as electric and autonomous vehicle technologies, battery storage, grid solutions and new fuel sources.
The funds will be hired by employees from Temasek and BlackRock, as well as a professional team hired for sources and investors and portfolio management.