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BlackRock’s U.S. Real Assets Platform Adopts Responsible Contractor Policy

NEW YORK--(BUSINESS WIRE)--

The firm is committed to fair compensation and benefits for workers

BlackRock’s U.S. Real Assets platform, which manages $17 billion in real estate and infrastructure assets in the United States, has adopted a Responsible Contractor Policy (“RCP”), which will apply to assets and companies in which funds managed by BlackRock Real Assets have a controlling interest. Under the policy, BlackRock Real Assets will support the selection of “responsible contactors” who deliver high quality services and appropriately train and fairly compensate their employees for construction, maintenance and operating services.

The Responsible Contractor Policy is a reflection of BlackRock Real Assets’ support for a healthy and profitable business environment governed by ethical industry practices. Incorporating the considerations outlined in the policy can add value to clients’ investments by ensuring that the services provided are high quality, on-schedule, and safe.

“The demand for infrastructure and real estate investments in the United States presents a tremendous opportunity both for our clients and for all of our partners,” said Jim Barry, Chief Investment Officer of BlackRock Alternative Investors and Global Head of BlackRock Real Assets. “Core to BlackRock Real Assets’ investment process is the integration of ESG considerations, including sound governance practices, which we believe are essential to building resilient portfolios for our clients.”

North America’s Building Trade Unions gave BlackRock Real Assets an “A” rating in a recent report card assessment, which assessed how well fund managers connect pension fund investments to projects that create union jobs.1 BlackRock Real Assets received high grades across all categories, including policy enforcement, union work hours, communication with labor, and support of third party neutrality in the event of union organizing campaigns.

“We are immensely pleased to partner with BlackRock to promote fair wages and benefits for workers on infrastructure projects. As we strive for more work opportunities, better wages and ladders of opportunities for our members and communities, this partnership advances the pro-investment and pro-worker collaboration needed to transform the industry for the future,” said Sean McGarvey, President of NABTU. “Reflecting their leading position in the industry, BlackRock’s Responsible Contractor Policy is among the strongest and most comprehensive in the investment management industry.”

Under applicable circumstances, this policy will subject BlackRock Real Assets to the following guidelines in its selection of independent contractors:

  • A bidding process that is competitive and is inclusive of firms who meet standards for “responsible contractors”;
  • Independent contractors must provide a Responsible Contractor Self-Certification Form;
  • BlackRock Real Assets or operating company managers will use commercially reasonable efforts to exclude debarred contractors;
  • BlackRock Real Assets will support a position of neutrality in the event of a campaign to organize workers.

BlackRock believes that business-relevant environmental, social and governance factors can contribute to a company’s long-term financial performance, and that integrating these factors into the investment process can enhance long-term risk adjusted returns for its clients.

About BlackRock Real Assets

In today’s dynamic and complex global investing market, we seek to help our clients’ access real assets that could help meet their investment goals by providing a distinct range of well defined, outcome orientated strategies, along the investment risk - return spectrum.

Our dedicated teams of industry and sector specialists deliver global reach, with deep local expertise. They have decades of relevant experience, are deeply embedded in their operating industries by sector and geography and have developed strong partnership networks over time. BlackRock’s culture of risk management, knowledge sharing and investment discipline sets us apart and underpins all that we do. With over 380 professionals in 27 offices managing over US $50 billion in client commitments as of March 31, 2019, BlackRock Real Assets partners with clients to provide solutions tailored to individual portfolio needs such as income, growth, liquid or balanced real assets outcomes.

About BlackRock

BlackRock helps investors build better financial futures. As a fiduciary to investors and a leading provider of financial technology, our clients turn to us for the solutions they need when planning for their most important goals. As of March 31, 2019, the firm managed approximately $6.52 trillion in assets on behalf of investors worldwide. For additional information on BlackRock, please visit www.blackrock.com | Twitter: @blackrock | Blog: www.blackrockblog.com | LinkedIn: www.linkedin.com/company/blackrock.

About North America’s Building Trades Unions

North America’s Building Trades Unions (NABTU) are an alliance of 14 national and international unions in the building and construction industry that collectively represent over 3 million skilled craft professionals in the United States and Canada. NABTU members participate in multi-employer pension funds with over $600 billion in assets. Each year, these unions and signatory contractor partners invest over $1 billion of private sector money in apprenticeship training and education to produce the safest, most highly trained, and productive skilled craft workers in the world. NABTU are dedicated to creating economic security and employment opportunities for their construction workers by safeguarding wage and benefits standards, promoting responsible private capital investments, investing in renown apprenticeship and training, and creating pathways to the middle class for women, communities of color and military veterans in the construction industry.

1 NABTU, which created and conducted the survey, is not a BlackRock client. BlackRock did not make any payment or other compensation to participate in the survey. The survey was sent to the top 100 real estate firms by equity. The report assessed respondents based on five categories, including the overall strength of a firm’s Responsible Contractor Policy, examples of policy enforcement, how firms track work hours for unionized labor, their project notification process and on their support of third party neutrality in the event of an unionization effort. The report card rating is not indicative of future performance by the firm or any investments it manages, and may not be representative of any one client’s experience.

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