FINANCIAL PROFESSIONALS
OUTLOOK & INSIGHTS
BY TOPIC
DOCUMENTS
Demand for a clean, green tomorrow will advance energy and conservation.
The persistent increase in global emissions has led to intensifying debates around climate change and how we can resolve it. There are several forces underpinning this megatrend—such as an expanding population and the rising demand for food, and the energy and materials that continue to strain the finite resources of the planet—making the need for solutions that address resource scarcity greater than ever.
Climate change: The earth in the hot seat
The impact of climate change is evident when looking at the numbers:
- 50% of the world’s energy is predicted to come from solar and wind by 2050, up from just 7% in 20151
- Renewables are set to represent ¾ of the $12 trillion the world invests in new power technology through 20401
- The US National Climate Assessment report noted that sea levels are now rising twice as fast as 25 years ago2
How can we invest in solutions?
The social and economic consequences of climate change are substantial. As a result, new solutions to address finite resources continue to emerge, presenting opportunities to invest in companies that are focused on making a positive impact - through energy efficiency, sustainable food systems and scarce material alternatives.
Clean energy is cheaper than it has ever been
In some countries, clean energy sources are comparable to natural gas and coal power in terms of unit costs and rely less on government subsidies each year.
88% The average price of solar module has fallen 88% since 20103
40% The cost of wind turbines has declined by over 40% since 20103
Resource scarcity: Getting more out of less
As large emerging markets continue to grow, the need for nutrition rises with per capita GDP. This greater demand will require agricultural solutions, as it will have to be satisfied with fewer resources.
Globally, the area of land dedicated to agriculture has persistently declined over the last 20 years and with it so has agriculture’s share of total employment – going from 42% to 25% in the last 30 years.4
1Bloomberg, New Energy Outlook, 2018
2Fourth National Climate Assessment, 2018
3Bloomberg, New Energy Outlook, 2018
4World Bank, March 2019
Carefully consider the Funds' investment objectives, risk factors, and charges and expenses before investing. This and other information can be found in the Funds' prospectuses or, if available, the summary prospectuses, which may be obtained by visiting the iShares Fund and BlackRock Fund prospectus pages. Read the prospectus carefully before investing.
Investing involves risk, including possible loss of principal.
International investing involves risks, including risks related to foreign currency, limited liquidity, less government regulation and the possibility of substantial volatility due to adverse political, economic or other developments. These risks often are heightened for investments in emerging/ developing markets or in concentrations of single countries.
Funds that concentrate investments in specific industries, sectors, markets or asset classes may underperform or be more volatile than other industries, sectors, markets or asset classes and than the general securities market.
Technology companies may be subject to severe competition and product obsolescence.
This material represents an assessment of the market environment as of the date indicated; is subject to change; and is not intended to be a forecast of future events or a guarantee of future results. This information should not be relied upon by the reader as research or investment advice regarding the funds or any issuer or security in particular.
The strategies discussed are strictly for illustrative and educational purposes and are not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. There is no guarantee that any strategies discussed will be effective.
The information presented does not take into consideration commissions, tax implications, or other transactions costs, which may significantly affect the economic consequences of a given strategy or investment decision.
This material contains general information only and does not take into account an individual's financial circumstances. This information should not be relied upon as a primary basis for an investment decision. Rather, an assessment should be made as to whether the information is appropriate in individual circumstances and consideration should be given to talking to a financial professional before making an investment decision.
The information provided is not intended to be tax advice. Investors should be urged to consult their tax professionals or financial professionals for more information regarding their specific tax situations.
The Funds are distributed by BlackRock Investments, LLC (together with its affiliates, "BlackRock").
The iShares Funds are not sponsored, endorsed, issued, sold or promoted by Barclays, Bloomberg Finance L.P., BlackRock Index Services, LLC, Cohen & Steers Capital Management, Inc., European Public Real Estate Association (“EPRA® ”), FTSE International Limited (“FTSE”), ICE Data Services, LLC, India Index Services & Products Limited, JPMorgan Chase & Co., Japan Exchange Group, MSCI Inc., Markit Indices Limited, Morningstar, Inc., The NASDAQ OMX Group, Inc., National Association of Real Estate Investment Trusts (“NAREIT”), New York Stock Exchange, Inc., Russell or S&P Dow Jones Indices LLC. None of these companies make any representation regarding the advisability of investing in the Funds. With the exception of BlackRock Index Services, LLC, who is an affiliate, BlackRock Investments, LLC is not affiliated with the companies listed above.
Neither FTSE nor NAREIT makes any warranty regarding the FTSE NAREIT Equity REITS Index, FTSE NAREIT All Residential Capped Index or FTSE NAREIT All Mortgage Capped Index; all rights vest in NAREIT. Neither FTSE nor NAREIT makes any warranty regarding the FTSE EPRA/NAREIT Developed Real Estate ex-U.S. Index, FTSE EPRA/NAREIT Developed Europe Index or FTSE EPRA/NAREIT Global REIT Index; all rights vest in FTSE, NAREIT and EPRA.“FTSE®” is a trademark of London Stock Exchange Group companies and is used by FTSE under license.
© 2020 BlackRock, Inc. All rights reserved. BLACKROCK, BLACKROCK SOLUTIONS, BUILD ON BLACKROCK, ALADDIN, iSHARES, iBONDS, FACTORSELECT, iTHINKING, iSHARES CONNECT, FUND FRENZY, LIFEPATH, SO WHAT DO I DO WITH MY MONEY, INVESTING FOR A NEW WORLD, BUILT FOR THESE TIMES, the iShares Core Graphic, CoRI and the CoRI logo are trademarks of BlackRock, Inc., or its subsidiaries in the United States and elsewhere. All other marks are the property of their respective owners.
ICRMH0619U-865401