BlackRock President and CEO Laurence D. Fink attends a session at the annual meeting of the World Economic Forum (WEF) in Davos on January 23, 2020.
COFFRINI MANUFACTURER
Singapore state investor Temasek Holdings and asset manager BlackRock will do so they partnered to invest in private companies that use technology to reduce carbon emissions, companies said Tuesday.
The association, known as decarbonization partners, will launch a series of venture capital investment funds in the risk and initial growth phase, the two companies said in a statement.
Temasek and BlackRock plan to commit a combined initial capital of $ 600 million to invest through the funds, which would also raise money from third-party investors. The first fund has a goal of $ 1 billion and will include the capital of the two companies.
“The world cannot fulfill its net ambitions from scratch without transformative innovation,” Larry Fink, president and CEO of BlackRock, said in a joint statement.
“For decarbonization solutions and technologies to transform our economy, we need to scale them,” Fink said. “To do that, they need a patient, well-managed patient to support their vital goals.”
He said the partnership will help define climate solutions as an autonomous asset class that is essential to the two companies’ collective mission, as well as “a historic investment opportunity created by the zero net transition.” .
BlackRock, the world’s largest money manager, is pushing companies to reveal how they will survive in a world of zero greenhouse gas emissions.
In his annual letter to CEOs this year, Fink said better outreach on sustainability is in the best interests of companies and investors.
Temasek, one of the world’s leading investors, has pledged to halve its portfolio emissions by 2030. It plans to end zero net emissions by 2050.
“Aggressive and daring actions are needed to make global zero-zero ambition a reality,” said Dilhan Pillay, CEO of Temasek International. “Through collective 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 help deliver innovative solutions at scale to meet climate challenges. ”
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 cared for by Temasek and BlackRock employees, as well as by a professional team recruited to obtain and make investments and manage the portfolio.