BlackRock Highlights 2024 Sustainable Investment Opportunities

What trends should we be monitoring to help identify sustainable investment opportunities in 2024? BlackRock, the world’s largest asset management firm, is tracking five “mega forces” that they define as “big, structural changes that affect investing now, and far in the future.” One of these mega forces is the transition to a low-carbon economy, which BlackRock says “is set to spur a massive capital reallocation as energy systems are rewired.” In a recent weekly commentary from BlackRock Investment Institute, which is one of our Top Stories, BlackRock points to three key areas of the low-carbon transition that could result in market-moving developments. The three areas are:

• Falling battery prices, which could boost demand for energy storage systems for power grids, and for electric and hybrid vehicles
• Elections around the globe this year could affect future energy and industrial policy
• Rising physical damages could spur investment interest in climate resilience

Mark Segal, writing in ESG Today, summarizes the BlackRock findings, citing an 80% drop in lithium prices, intense competition, and technological advances as drivers to lower battery prices. The elections around the globe cited by BlackRock include those in the U.S., EU and India. For climate resilience, BlackRock cites opportunity areas such as “early monitoring systems for floods, air conditioning to cope with heatwaves or retrofitting buildings to better withstand extreme weather.”

The G&A team is continuing to track trends in sustainable investing and monitoring their impact on corporate sustainability reporting and disclosure requirements. We look forward to keeping you updated and are available to answer questions and provide counsel.

This is just the introduction of G&A's Sustainability Highlights newsletter this week. Click here to view the full issue.