RE: Investor disdain for mining is threatening net zero, says Blackrock ‘Complacent attitude’ towards the sector has led to a ‘staggering’ investment gap By Szu Ping Chan 30 October 2023 • 6:33pm Larry Fink Larry Fink, Blackrock’s chief executive, has been one of the most vocal supporters of so-called ESG investment principles Credit: Stefan Wermuth/Bloomberg Distaste for mining projects among investors is threatening net zero targets, the world’s biggest asset manager has warned. Blackrock said a “complacent attitude” towards the sector has led to money managers underestimating the importance of base metals in delivering clean energy. It said environmental apprehension around mining has led to a “staggering” investment gap, which could lead to a “scarcity” of critical raw materials. Blackrock fund managers Evy Hambro and Olivia Markham said the mining and metals industry will play a critical role in achieving net zero, as they called for more investment to help the sector go green. Mr Hambro said: “Investors have to date been focused on the companies more closely associated with the [net zero] transition, like electric vehicle manufacturers or renewables companies, rather than the companies that supply them.” In a report published on Monday, the Blackrock fund managers warned that an expected “surge in demand” for base metals like copper could lead to widespread shortages and higher prices, adding to the cost of achieving net zero. They said: “The demand for metals and materials in the coming years is poised to surpass all prior estimates.3 Nov 2023 07:19
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