The junk hauling and recycling industry is in a state of upheaval, with junk removal Orange County and across the world dealing with the change to China’s change in policies regarding recyclable waste. In the wake of this turmoil, however, the industry has become a ripe field for investment, something that the world’s largest asset manager has taken note of.
The $6.8tn-in-assets managing firm recently announced early in October that the increasing global awareness with regards to waste could do much to bolster the bottom line of companies like aluminum can makers, as well as recycling firms. In accordance to this, BlackRock has launched a new fund, which they’ve started with $20m of their own funds, for the acquisition of bonds that benefit from the recycling craze.
BlackRock fund co-manager Sumana Manohar says that consumers are altering how people and investors should spend, and the ‘circular economy’ will be a huge driving factor in decision-making for financials, and other facets in the future. This, in turn, creates opportunities for the frontrunners.
The fund is the firm’s latest effort to capitalize on the increasing popularity of sustainable investing, which has been taking the investing world by storm, particularly among those who are worried about the threat of climate change. Half of all the assets the firm is managing will be aimed towards some sort of environmental, social, and/or corporate governance goal by 2020, according to a forecast by Deustche Bank.
BlackRock, based on New York, has taken heat in the past with regards to its association to oil, gas, and coal companies, and for working harder to ensure that these companies publicly disclose their lobbying activities.
The Ellen MacArthur Foundation has taken on the role as advisor to the fund, and its CEO, Andrew Morlet, has stated that cutting down on materials used help address 45% of the world’s CO2 emissions related to production.
He says that companies are now seeing the value of supporting endeavors like junk removal Orange County or mass recycling, with hundreds of companies moving into the circular economy space.
Manohar has noted that aluminum car producers, and other similar companies are already seeing massive gains in their stocks thanks to the backlash towards plastics, which bodes well for the fund.