The world’s largest asset manager, BlackRock, has designed an active fund that aims to provide exposure to the materials needed to facilitate a global net zero transition. The BlackRock Global Funds (BGF) Brown to Green Materials Fund will invest at least 80% of its total assets in materials that are essential to the transition and opportunities created by the decarbonisation of those materials. “A low-carbon transition sees the global economy moving from an energy system that is fossil fuel and carbon-intensive, to one where the critical inputs are materials and metals,” said Olivia Markham, Managing Director and Portfolio Manager at BlackRock, adding that the fund is expected to provide “significant value-creation opportunities for investors by targeting transitioning companies involved in metals and mining, chemicals, steel, and construction materials”. The BGF is classified as Article 8 under the EU’s Sustainable Finance Disclosure Regulation (SFDR). Evy Hambro, BlackRock’s Global Head of Thematic and Sector Investing, said: “As transition materials companies prepare for significant growth, many are also focusing on reducing their own emission intensities. We expect to see a re-rating for materials companies that best navigate a transition. We’ve created the BGF Brown to Green Materials Fund to provide clients with exposure to this significant investment opportunity.” Earlier this month, BlackRock launched a fundraiser for the Global Renewable Power Fund IV, which will target opportunities across wind and solar to battery storage, transmission, and sustainable mobility.