BlackRock Chairman and CEO Laurence D. Fink will attend a session at the World Economic Forum (WEF) Annual Meeting on January 23, 2020 in Davos.
COFFRINI FABRIC
Singapore state investor Temasek Holdings and asset manager BlackRock will work together to invest in private companies that use technology to reduce carbon emissions, the companies said Tuesday.
The two companies said in a statement that the partnership, called Decarbonization Partners, would launch a series of venture capital and private equity investment funds with early growth.
Temasek and BlackRock plan to jointly invest $ 600 million in start-up capital to invest over the funds, which would also raise money from third-party investors. The first fund has a target of $ 1 billion and will include capital from both companies.
“The world cannot meet its net zero ambitions without transformative innovation,” Larry Fink, chairman and CEO of BlackRock, said in a joint statement.
Fink said that solutions and technologies for carbon dioxide emissions must transform our economy. “To do that, they need patient, well-managed capital to support their important goals.”
He said the partnership would help define climate solutions as an independent asset class essential to the joint venture of the two companies, as well as “a historic investment opportunity created by the net zero transition.”
BlackRock, the world’s largest money manager, urges companies to announce how they will survive in a world of net zero greenhouse gas emissions.
In his annual letter to CEOs this year, Fink said that better disclosure about sustainability is in the best interests of both companies and investors.
Temasek, a leading global investor, has committed to halving the emissions of its portfolio by 2030. He plans to finally go to the net release by 2050.
“Dare, aggressive action is needed to make the global net zero ambition a reality,” said Dilhan Pillay, CEO of Temasek International. “Through joint efforts with like-minded partners, we will be able to create
sustainable value for all our long-term stakeholders, and investors will have the opportunity to offer innovative solutions on a large scale to meet climate challenges. ‘
The Decarbonization Partners funds will invest in growth companies in the early stages in areas such as electric and autonomous vehicle technologies, battery storage, network solutions and emerging fuel resources.
The funds will be staffed by employees of Temasek and BlackRock, as well as a professional team recruited to obtain and undertake investments and manage the portfolio.