BlackRock Chairman and CEO Laurence D. Fink attends a session at the World Economic Forum (WEF) annual meeting in Davos on January 23, 2020.
FABRIC COFFRINI
Singaporean state investor Temasek Holdings and asset manager BlackRock will do just that are teaming up to invest in private companies that use technology to reduce carbon emissions, the companies said Tuesday.
The partnership, referred to as Decarbonization Partners, will launch a range of venture capital and early-growth private equity investment funds, the two companies said in a statement.
Temasek and BlackRock plan to jointly invest $ 600 million in seed capital in the funds, which would also raise money from outside investors. The first fund has a target of $ 1 billion and will include capital from both companies.
“The world cannot deliver its net zero ambitions without transformational innovation,” Larry Fink, BlackRock’s chairman and CEO, said in a joint statement.
“For low-carbon solutions and technologies to transform our economy, they need to be scaled,” said Fink. “To do that, they need patient, well-managed capital to support their vital goals.”
He said the partnership will help define climate solutions as a self-contained asset class essential to the collective mission of the two companies, as well as “a historic investment opportunity created by the net zero transition.”
BlackRock, the world’s largest money manager, is urging companies to disclose how they will survive in a world of net zero greenhouse gas emissions.
In his annual letter to CEOs this year, Fink said better sustainability disclosures are in the best interests of both companies and investors.
Temasek, a top global investor, is committed to halving the emissions of its portfolio by 2030. It plans to eventually move to net zero emissions by 2050.
“Bold, aggressive actions are needed to make the global net zero ambition a reality,” said Dilhan Pillay, CEO of Temasek International. “We will be able to create through joint efforts with like-minded partners
long-term sustainable value for all our stakeholders, and investors will have the opportunity to provide innovative solutions at scale to address climate challenges. “
The Decarbonization Partners funds will invest in early stage growth companies in areas such as electric and autonomous vehicle technologies, battery storage, network solutions and emerging fuel sources.
The funds will be staffed by Temasek and BlackRock employees, as well as a professional team recruited to find and execute investments and manage the portfolio.