Blackstone unveils sustainability focused credit platform

The firm will invest $100 billion in energy and climate change solutions over next the decade.

Alternative investment giant Blackstone has launched a sustainable resources platform within its credit division, through which it plans to invest $100 billion over the next decade, it said in a news release.

The dedicated platform will focus on investing and lending to renewable energy companies related to the energy transition and climate change solutions.

“The launch of this platform demonstrates our conviction in the investment opportunities presented by the energy transition,” said Jon Gray, president and chief executive officer at Blackstone, said in the release. “Companies globally are shifting to meet this demand. We believe private capital is essential to supporting decarbonisation goals and our scale allows us to play a major role.”

Blackstone’s sustainable resources platform, which includes more than 30 professionals in North America and Europe, will invest across the credit spectrum in investment grade credit, non-investment grade credit, and preferred and convertible securities.

The group will invest across a variety of sectors, including residential solar and home efficiency, renewable electricity generation and storage, energy transition products, decarbonised transportation, sustainability linked loans, green financings that fund environmental projects and other energy infrastructure investments.

“We believe large scale and flexible capital are essential to funding decarbonisation,” said Blackstone’s Robert Horn, who has been named the global head of the sustainable resources group and will lead the initiative.

To complement the new group, Blackstone also announced the hiring of EIG’ Global Energy Partners’ Simon Hayden, who will be a senior managing director and will lead the sustainable resources activities in Europe.

Last January, Blackstone announced its emission reduction program in hopes of reducing carbon emissions by a total of 15 percent over three years for all new assets where the firm controls energy usage. The firm is also developing a carbon accounting system to track and report emissions reductions.

New York-based Blackstone holds $731 billion in assets under management in investment vehicles focused on private equity, real estate, public debt and equity, life sciences, growth equity, opportunistic, non-investment-grade credit, real assets and secondary funds.