BlackRock has launched a new fund called the “Brown to Green Materials Fund,” which targets undervalued companies that produce raw materials and products that drive the energy transition. The fund focuses on industries such as metals and mining, cement, and construction, which contribute over 17% of global greenhouse gas emissions. BlackRock believes that companies that produce materials critical to the green energy transition, such as lithium and copper, will benefit from the demand if the adoption of lower carbon technologies exceeds expectations. The fund screens high-emitting companies in the MSCI All-Country World Index and selects those with the technology and finances to implement changes in a realistic timeframe. BlackRock’s global head of Thematic and Sector Investing, Evy Hambro, said that this broad materials universe is trading at a large discount relative to the broader market and growth opportunity. However, as these businesses become increasingly green in their production processes, the discount applied to them is likely to reduce.
resource: https://esgnews.com/blackrock-launches-brown-to-green-materials-fund-targeting-greening-of-materials-sector/