Blackstone Invests in Sustainable Future & Energy Transition

Blackstone, the world’s largest alternative asset manager, invests in companies with innovative solutions to tackle climate change and energy transition

With more than a trillion dollars in assets under management, Blackstone is the world’s largest alternative asset manager. 

The company’s stated aim is ‘to deliver for investors by building businesses that power tomorrow’s economy’, and increasingly that means investments in sustainable companies and those involved in the energy transition.

Blackstone is also making sure its own house is in order, making significant investments in the last decade to advance sustainability initiatives across its diverse portfolio and operations.

The New York-headquartered firm announced its Emissions Reduction Program in January 2021 which has reduced Scope 1 and Scope 2 emissions by 15% in new assets where Blackstone controls the energy usage.

Blackstone has also made strides in making buildings more sustainable. Take the iconic Willis Tower (formerly Sears Tower, and once the world’s tallest building when built 50 years ago) in Chicago. Blackstone, in partnership with portfolio company EQ Office, oversaw a US$500 million renovation that created 450 jobs and made the skyscraper the largest LEED Platinum-certified building in the Americas.

EQ improved the building’s environmental quality by revamping the heating and cooling (HVAC) system, installing energy-efficient LED lights, and managing water usage. These changes reduced the building’s energy consumption by up to 20% and water consumption by 30%.

Blackstone Building New European HQ with High Sustainability Standards

Now Blackstone is constructing a new European headquarters on the site of the former Lansdowne House in London.

The 10-floor building will be nearly two thirds larger than Blackstone’s existing office on the Berkeley Square site, and is being built by developer CO–RE and Stirling Prize-winning architects AHMM.

AHMM is using innovative construction methods to ensure the building can be adapted and repurposed in future decades, and is being built to aspire to BREEAM Outstanding, WELL Platinum, NABERS 5 Star Rating and EPC A sustainability criteria.

Recycled steel from the original building will be used in construction, and there will be a biodiverse outdoor terrace, while energy will be provided by solar panels and ground-source heat pumps.

Bradley Baker, chief executive of CO—RE, said Blackstone’s new regional HQ will raise the standard of future office design.

Blackstone’s European HQ Will be a 10-Floor Building, Home to 600 Employees / Image: Secchi Smith – AHMM

How Blackstone is Investing in Climate Change Solutions

Blackstone is partnering with companies in its portfolio that offer innovative solutions to tackle climate change. These companies include:

  • Desotec – on a mission to protect the planet through innovative circular filtration solutions, which enable clean water, air, and soil.

  • Legence – an energy transition accelerator that advises buildings and facilities on how to lower costs and increase performance via renewables.

  • Sphera – a leading provider of environmental, social and governance (ESG) software, data and consulting services.

In 2022, Blackstone spotted an opportunity to invest US$100 billion in businesses like these to support the energy transition. Not only that, but Blackstone selected portfolio companies that capture cost savings through GHG emission reduction efforts as part of its Emissions Reduction Program and Decarbonization Accelerator.

Blackstone believes that meeting global carbon reduction goals will require a staggering US$4.5 trillion of capital expenditures and investments every single year until 2050. The capital it invests is enabling the energy transition we all desperately need.

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