- BlackRock (NYSE:BLK) stock climbed 3.8% in Monday afternoon trading as the asset manager was said to have formed a unit to make investments in opportunities tied to the global transition to a low-carbon economy.
- The new unit, dubbed Transition Capital, would collaborate with portfolio managers and BlackRock’s (BLK) capital markets division to fund opportunities focused on the low-carbon shift across an array of asset classes and geographies, Reuters reported, citing a memo to staff.
- The move comes at a time when BlackRock (BLK) has faced criticism from Republican-led states due to its ESG (environmental, social, and corporate governance) policies, thus a number of state treasurers divested more than $1B from BLK funds.
- Transition Capital will be part of BlackRock Alternatives and managed by Dickon Pinner, who previously served as the head of sustainability efforts at consulting firm McKinsey, according to the memo. He will report to Edwin Conway, global head of BlackRock Alternative Investors, as well as Philipp Hildebrand, the company’s vice chair.
- Previously, (Oct. 11) BlackRock cut to Neutral at UBS on ESG pressure.
