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ORS’ TOP 5 ESG NGES
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focus on a particular ntal, Social, or e theme.
seek to generate a e sustainable outcome, financial return.
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Making sense of the data
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Sustainable data, metrics and calculations vary per provider and interpretation differs – all of which makes it difficult for investors to quantify the sustainable output of their investments. Investors need to trust that a provider is taking a robust, rigorous approach when assessing the quality and accuracy of ESG data.
Reduce exposure to carbon emissions or fossil fuels
ESG BROAD ESG BROAD ESG BROAD ESG BROAD
Reduce exposure to carbon emissions or fossil fuels
Funds with an explicit ESG objective, which may include a targeted quantifiable ESG outcome.
Funds with an explicit ESG objective, which may include a targeted quantifiable ESG outcome.
Funds with an explicit ESG objective, which may include a targeted quantifiable ESG outcome.
Funds with an explicit ESG objective, which may include a targeted quantifiable ESG outcome.
Prioritise investments based on climate opportunities and risks
Prioritise investments based on climate opportunities and risks
ESG THEMATIC IMPACTIMPACT 5 IMPACTIMPACT 5 ESG THEMATIC ESG THEMATIC ESG THEMATIC
For illustrative purposes only. The above list is not exhaustive but represents various ways investors can take specific climate objectives into consideration.
For illustrative purposes only. The above list is not exhaustive but represents various ways investors can take specific climate objectives into consideration.
Funds that focus on a particular Environmental, Social, or Governance theme.
Company engagement
Company engagement
Funds that focus on a particular Environmental, Social, or Governance theme.
Funds that seek to generate a measurable sustainable outcome, alongside a financial return.
Funds that focus on a particular Environmental, Social, or Governance theme.
Funds that focus on a particular Environmental, Social, or Governance theme.
Funds that seek to generate a measurable sustainable outcome, alongside a financial return.
Funds that seek to generate a measurable sustainable outcome, alongside a financial return.
In 2020, we added 1,200 sustainability metrics to Aladdin, our risk and portfolio management system, and established multiple partnerships with data analytics firms.³ This data feeds into our risk management platform and our investment process – from research to portfolio construction, modelling, and risk management and reporting.
ty through our sustainable
At iShares, we are committed to offering transparency, consistency, and expertise with analysing and interpreting ESG data, driving a push for standardisation across the industry.
3 4
ed as a crucial factor for ct, it is widely recognised ment risk. In 2020 alone, estimated US$120 billion
ever recorded.⁶ But along investors often aren’t sure e considerations into their
d as a crucial factor for , it is widely recognised nt risk. In 2020 alone, stimated US$120 billion er recorded.⁶ But along vestors often aren’t sure onsiderations into their
ability
ng alpha- unds.
n based on
s to climate investing to ange and select the best
m, 2020 Global Investing Survey”, 5 clients representing USD25T in
nt Sustainability Survey lient Sustainability Survey
eam, 2020 Global Investing Survey”, 425 clients representing USD25T in
BlackRock, “Sustainability Goes Mainstream, 2020 Global Investing Survey”, EMEA results, December 2020, Survey of 425 clients representing USD25T in AUM.
1
BlackRock, “Sustainability Goes Mainstream, 2020 Global Investing Survey”, EMEA results, December 2020, Survey of 425 clients representing USD25T in AUM.
1 1
BlackRock, “Sustainability Goes Mainstream, 2020 Global Investing Survey”, EMEA results, December 2020, Survey of 425 clients representing USD25T in AUM.
BlackRock, “Sustainability Goes Mainstream, 2020 Global Investing Survey”, EMEA results, December 2020, Survey of 425 clients representing USD25T in AUM.
1
² BlackRock, as at 30 June 2021, EMEA Client Sustainability Survey ³ BlackRock’s 2020 sustainability actions
² BlackRock, as at 30 June 2021, EMEA Client Sustainability Survey ³ BlackRock’s 2020 sustainability actions
² BlackRock, as at 30 June 2021, EMEA Client Sustainability Survey ³ BlackRock’s 2020 sustainability actions
² BlackRock, as at 30 June 2021, EMEA Client Sustainability Survey ³ BlackRock’s 2020 sustainability actions
⁴ BlackRock Global Business Intelligence, as of 30 June 2021. ⁵ BlackRock, Bloomberg, as of 30 June 2021. ⁶ Munich Re NatCatService database (as of 30 March 2021).
⁴ BlackRock Global Business Intelligence, as of 30 June 2021. ⁵ BlackRock, Bloomberg, as of 30 June 2021. ⁶ Munich Re NatCatService database (as of 30 March 2021).
hes to climate investing to range and select the best
44 Choosing
In the first half of 2021, 48 sustainable ETFs launched industry wide in Europe alone.⁴ With a growing number of sustainable investment products available, investors need sustainable ETFs that are built with quality at the forefront, with a provider that is aligned to local regulations and the fast-changing sustainable landscape.
Climate change has emerged as a crucial factor for investors to consider; in fact, it is widely recognised that climate risk is investment risk. In 2020 alone, natural disasters led to an estimated US$120 billion in damages – the highest ever recorded.⁶ But along with other ESG principles, investors often aren’t sure how to incorporate climate considerations into their portfolios.
the right product
The emerging climate trend
Climate change has emerged as a crucial factor for investors to consider; in fact, it is widely recognised that climate risk is investment risk. In 2020 alone, natural disasters led to an estimated US$120 billion in damages – the highest ever recorded.⁶ But along with other ESG principles, investors often aren’t sure how to incorporate climate considerations into their portfolios.
Climate change has emerged as a crucial factor for investors to consider; in fact, it is widely recognised that climate risk is investment risk. In 2020 alone, natural disasters led to an estimated US$120 billion in damages – the highest ever recorded.⁶ But along with other ESG principles, investors often aren’t sure how to incorporate climate considerations into their portfolios.
Climate change has emerged as a crucial factor for investors to consider; in fact, it is widely recognised that climate risk is investment risk. In 2020 alone, natural disasters led to an estimated US$120 billion in damages – the highest ever recorded.⁶ But along with other ESG principles, investors often aren’t sure how to incorporate climate considerations into their portfolios.
The BlackRock Sustainable Investing framework classifies iShares ETFs and index products according to four sustainable approaches.
iShares has three approaches to climate investing to help investors navigate our range and select the best climate option for them.
iShares has three approaches to climate investing to help investors navigate our range and select the best climate option for them.
iShares has three approaches to climate investing to help investors navigate our range and select the best climate option for them.
iShares has three approaches to climate investing to help investors navigate our range and select the best climate option for them.
iShares is backed by BlackRock’s Investment Stewardship team that engages with companies big and small, and at all stages of their sustainability integration journey. Engagement is one way the team advocates for sound corporate governance and sustainable business models that can help drive the long-term financial returns that enable our clients to meet their investing goals. In 2020–2021, we held more than 3,650 engagements with over 2,300 companies.⁷
iShares is backed by BlackRock’s Investment Stewardship team that engages with companies big and small, and at all stages of their sustainability integration journey. Engagement is one way the team advocates for sound corporate governance and sustainable business models that can help drive the long-term financial returns that enable our clients to meet their investing goals. In 2020–2021, we held more than 3,650 engagements with over 2,300 companies.⁷
1
Transitioning portfolios
BlackRock’s investment stewardship toolkit involves engaging with companies, voting in our clients’ interests and providing transparency in our activities.
The emerging climate trend
The emerging climate trend
The emerging climate trend
Funds that seek to generate a measurable sustainable outcome, alongside a financial return.
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Funds that seek to track indices that eliminate exposure to certain business areas.
Funds that seek to track indices that eliminate exposure to certain business areas.
Funds that seek to track indices that eliminate exposure to certain business areas.
ESG BROAD
Funds with a which may in quantifiable
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For professional investors only ADVERTISEMENT
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Funds that seek to track indices that eliminate exposure to certain business areas.
INVESTORS’ TOP 5 CHALLENGES
TARGETED EXPOSURES
TARGETED EXPOSURES
Target climate themes and impact outcomes
Target climate themes and impact outcomes
Reduce exposure to carbon emissions or fossil fuels
Reduce exposure to carbon emissions or fossil fuels
Reduce exposure to carbon emissions or fossil fuels
Reduce exposure to carbon emissions or fossil fuels
Prioritise investments based on climate opportunities and risks
Prioritise investments based on climate opportunities and risks
Prioritise investments based on climate opportunities and risks
Prioritise investments based on climate opportunities and risks
With more sustainable ETFs European stock exchanges t iShares gives you choice to s meets your needs and clarit investing framework.⁵
Target climate themes and impact outcomes
Target climate themes and impact outcomes
Target climate themes and impact outcomes
Target climate themes and impact outcomes
For illustrative purposes only. The above list is not exhaustive but represents various ways investors can take specific climate objectives into consideration.
With more sustainable ETFs registered on more European stock exchanges than any other provider, iShares gives you choice to select the fund that meets your needs and clarity through our sustainable investing framework.⁵
With more sustainable ETFs registered on more European stock exchanges than any other provider, iShares gives you choice to select the fund that meets your needs and clarity through our sustainable investing framework.⁵
With more sustainable ETFs registered on more European stock exchanges than any other provider, iShares gives you choice to select the fund that meets your needs and clarity through our sustainable investing framework.⁵
With more sustainable ETFs registered on more European stock exchanges than any other provider, iShares gives you choice to select the fund that meets your needs and clarity through our sustainable investing framework.⁵
We firmly believe in the value of engaging with companies. When BlackRock engages a company, we do so from the perspective of a long- term investor. Engagement enables us to have ongoing dialogue with companies and build our understanding of the challenges and opportunities they face. This is particularly important for our clients invested in indexed funds, as they typically remain invested in a stock for as long as it remains in an underlying index – often many years.
We firmly believe in the value of engaging with companies. When BlackRock engages a company, we do so from the perspective of a long- term investor. Engagement enables us to have ongoing dialogue with companies and build our understanding of the challenges and opportunities they face. This is particularly important for our clients invested in indexed funds, as they typically remain invested in a stock for as long as it remains in an underlying index – often many years.
Picture a snowball rolling down a hill, getting bigger and gaining momentum the longer it travels. The shift towards sustainable investing is our snowball. And it is gathering momentum – European investors expect nearly 50% of their assets under management to be sustainable by 2025, compared with 21% in 2020.¹
55 5
Company engagement
Company engagement
Company engagement
Company engagement
4
For illustrative purposes only. The above list is not exhaustive but represents various ways investors can take specific climate objectives into consideration.
For illustrative purposes only. The above list is not exhaustive but represents various ways investors can take specific climate objectives into consideration.
For illustrative purposes only. The above list is not exhaustive but represents various ways investors can take specific climate objectives into consideration.
The emerging climate trend
However, sustainable investing is complex, with no one-size-fits-all approach. After conducting over 100 client interviews², we identified five challenges that European investors face with the shift towards sustainable investing:
We firmly believe in the value of engaging with companies. When BlackRock engages a company, we do so from the perspective of a long- term investor. Engagement enables us to have ongoing dialogue with companies and build our understanding of the challenges and opportunities they face. This is particularly important for our clients invested in indexed funds, as they typically remain invested in a stock for as long as it remains in an underlying index – often many years.
We firmly believe in the value of engaging with companies. When BlackRock engages a company, we do so from the perspective of a long- term investor. Engagement enables us to have ongoing dialogue with companies and build our understanding of the challenges and opportunities they face. This is particularly important for our clients invested in indexed funds, as they typically remain invested in a stock for as long as it remains in an underlying index – often many years.
We firmly believe in the value of engaging with companies. When BlackRock engages a company, we do so from the perspective of a long- term investor. Engagement enables us to have ongoing dialogue with companies and build our understanding of the challenges and opportunities they face. This is particularly important for our clients invested in indexed funds, as they typically remain invested in a stock for as long as it remains in an underlying index – often many years.
We firmly believe in the value of engaging with companies. When BlackRock engages a company, we do so from the perspective of a long- term investor. Engagement enables us to have ongoing dialogue with companies and build our understanding of the challenges and opportunities they face. This is particularly important for our clients invested in indexed funds, as they typically remain invested in a stock for as long as it remains in an underlying index – often many years.
Climate change has emerge investors to consider; in fac that climate risk is investme natural disasters led to an e in damages – the highest ev with other ESG principles, in how to incorporate climate portfolios.
2
BlackRock, “Sustainability Goes Mainstrea EMEA results, December 2020, Survey of 4 AUM.
1
Building a sustainable portfolio tailored to specific requirements can be time-consuming. It is also challenging for investors to assess their current portfolio against ESG metrics and then determine which product substitutions will make their portfolio more sustainable.
BlackRock’s investment stewardship toolkit involves engaging with companies, voting in our clients’ interests and providing transparency in our activities.
² BlackRock, as at 30 June 2021, EMEA Cli ³ BlackRock’s 2020 sustainability actions
Making sense of the data
iShares has three approache help investors navigate our climate option for them.
Sustainable data, metrics provider and interpretatio makes it difficult for inves sustainable output of thei need to trust that a provid rigorous approach when a accuracy of ESG data.
iShares is backed by BlackRock’s Investment Stewardship team that engages with companies big and small, and at all stages of their sustainability integration journey. Engagement is one way the team advocates for sound corporate governance and sustainable business models that can help drive the long-term financial returns that enable our clients to meet their investing goals. In 2020–2021, we held more than 3,650 engagements with over 2,300 companies.⁷
When you invest with iShares, you get access to the broader added value, experience and expertise of BlackRock.
• Our Portfolio Analysis and Solutions team can help evaluate your portfolio’s holistic sustainability profile to assess your portfolio against ESG metrics.
⁷ BlackRock Investment Stewardship; Protecting our clients’ assets for the long- term, July 2021.
ng in sustainable ETFs, search ‘iShares ESG’ ing in sustainable ETFs, search ‘iShares ESG’
⁷ BlackRock Investment Stewardship; Protecting our clients’ assets for the long- term, July 2021.
To learn more about investing in sustainable ETFs, search ‘iShares ESG’
ments and the income from them can fall as well as rise and are not guaranteed. Investors may not get back the formance is not a reliable indicator of current or future results and should not be the sole factor of consideration
nts and the income from them can fall as well as rise and are not guaranteed. Investors may not get back the rmance is not a reliable indicator of current or future results and should not be the sole factor of consideration This material is for distribution to Professional Clients (as defined by the Financial Conduct Authority or MiFID pon by any other persons. Issued by BlackRock Advisors (UK) Limited, which is authorised and regulated by stered office: 12 Throgmorton Avenue, London, EC2N 2DL. Registered in England and Wales No. 00796793. Authority website for a list of authorised activities conducted by BlackRock. © 2021 BlackRock, Inc. All Rights
1876481
y. This material is for distribution to Professional Clients (as defined by the Financial Conduct Authority or MiFID d upon by any other persons. Issued by BlackRock Advisors (UK) Limited, which is authorised and regulated by gistered office: 12 Throgmorton Avenue, London, EC2N 2DL. Registered in England and Wales No. 00796793. ct Authority website for a list of authorised activities conducted by BlackRock. © 2021 BlackRock, Inc. All Rights
To learn more about investing in sustainable ETFs, search ‘iShares ESG’ To learn more about investing in sustainable ETFs, search ‘iShares ESG’ To learn more about investing in sustainable ETFs, search ‘iShares ESG’
BlackRock’s investment stewardship toolkit involves engaging with companies, voting in our clients’ interests and providing transparency in our activities.
BlackRock’s investment stewardship toolkit involves engaging with companies, voting in our clients’ interests and providing transparency in our activities.
BlackRock’s investment stewardship toolkit involves engaging with companies, voting in our clients’ interests and providing transparency in our activities.
BlackRock’s investment stewardship toolkit involves engaging with companies, voting in our clients’ interests and providing transparency in our activities.
3 Choosing
⁴ BlackRock Global Business Intelligence, as of 30 June 2021. ⁵ BlackRock, Bloomberg, as of 30 June 2021. ⁶ Munich Re NatCatService database (as of 30 March 2021).
Capital at risk. The value of investments and the income from them can fall as well as rise and are not guaranteed. Investors may not get back the amount originally invested. Past performance is not a reliable indicator of current or future results and should not be the sole factor of consideration when selecting a product or strategy. This material is for distribution to Professional Clients (as defined by the Financial Conduct Authority or MiFID Rules) only and should not be relied upon by any other persons. Issued by BlackRock Advisors (UK) Limited, which is authorised and regulated by the Financial Conduct Authority. Registered office: 12 Throgmorton Avenue, London, EC2N 2DL. Registered in England and Wales No. 00796793. Please refer to the Financial Conduct Authority website for a list of authorised activities conducted by BlackRock. © 2021 BlackRock, Inc. All Rights reserved. 1839402
Capital at risk. The value of investments and the income from them can fall as well as rise and are not guaranteed. Investors may not get back the amount originally invested. Past performance is not a reliable indicator of current or future results and should not be the sole factor of consideration when selecting a product or strategy. This material is for distribution to Professional Clients (as defined by the Financial Conduct Authority or MiFID Rules) only and should not be relied upon by any other persons. Issued by BlackRock Advisors (UK) Limited, which is authorised and regulated by the Financial Conduct Authority. Registered office: 12 Throgmorton Avenue, London, EC2N 2DL. Registered in England and Wales No. 00796793. Please refer to the Financial Conduct Authority website for a list of authorised activities conducted by BlackRock. © 2021 BlackRock, Inc. All Rights reserved. 1839402
Capital at risk. The value of investments and the income from them can fall as well as rise and are not guaranteed. Investors may not get back the amount originally invested. Past performance is not a reliable indicator of current or future results and should not be the sole factor of consideration when selecting a product or strategy. This material is for distribution to Professional Clients (as defined by the Financial Conduct Authority or MiFID Rules) only and should not be relied upon by any other persons. Issued by BlackRock Advisors (UK) Limited, which is authorised and regulated by the Financial Conduct Authority. Registered office: 12 Throgmorton Avenue, London, EC2N 2DL. Registered in England and Wales No. 00796793. Please refer to the Financial Conduct Authority website for a list of authorised activities conducted by BlackRock. © 2021 BlackRock, Inc. All Rights reserved. 1839402
Capital at risk. The value of investments and the income from them can fall as well as rise and are not guaranteed. Investors may not get back the amount originally invested. Past performance is not a reliable indicator of current or future results and should not be the sole factor of consideration when selecting a product or strategy. This material is for distribution to Professional Clients (as defined by the Financial Conduct Authority or MiFID Rules) only and should not be relied upon by any other persons. Issued by BlackRock Advisors (UK) Limited, which is authorised and regulated by the Financial Conduct Authority. Registered office: 12 Throgmorton Avenue, London, EC2N 2DL. Registered in England and Wales No. 00796793. Please refer to the Financial Conduct Authority website for a list of authorised activities conducted by BlackRock. © 2021 BlackRock, Inc. All Rights reserved. 1839402
• We can evolve your portfolio’s sustainability metrics with product substitutions, using alpha- seeking, factor and index sustainable funds.
• We can build a sustainable proposition based on your sustainability objectives.
⁴ BlackRock Global Business Intelligence, as of 30 June 2021. ⁵ BlackRock, Bloomberg, as of 30 June 2021. ⁶ Munich Re NatCatService database (as of 30 March 2021).
⁴ BlackRock Global Business Intelligence, as of 30 June 2021. ⁵ BlackRock, Bloomberg, as of 30 June 2021. ⁶ Munich Re NatCatService database (as of 30 March 2021).
⁴ BlackRock Global Business Intelligence, as of 30 June 2021. ⁵ BlackRock, Bloomberg, as of 30 June 2021. ⁶ Munich Re NatCatService database (as of 30 March 2021).
iShares is backed by BlackRock’s Investment Stewardship team that engages with companies big and small, and at all stages of their sustainability integration journey. Engagement is one way the team advocates for sound corporate governance and sustainable business models that can help drive the long-term financial returns that enable our clients to meet their investing goals. In 2020–2021, we held more than 3,650 engagements with over 2,300 companies.⁷
iShares is backed by BlackRock’s Investment Stewardship team that engages with companies big and small, and at all stages of their sustainability integration journey. Engagement is one way the team advocates for sound corporate governance and sustainable business models that can help drive the long-term financial returns that enable our clients to meet their investing goals. In 2020–2021, we held more than 3,650 engagements with over 2,300 companies.⁷
iShares is backed by BlackRock’s Investment Stewardship team that engages with companies big and small, and at all stages of their sustainability integration journey. Engagement is one way the team advocates for sound corporate governance and sustainable business models that can help drive the long-term financial returns that enable our clients to meet their investing goals. In 2020–2021, we held more than 3,650 engagements with over 2,300 companies.⁷
In 2020, we added 1,200 su to Aladdin, our risk and por system, and established m data analytics firms.³ This d management platform and – from research to portfolio and risk management and
To learn more about investi
Capital at risk. The value of investm amount originally invested. Past perf when selecting a product or strategy. Rules) only and should not be relied the Financial Conduct Authority. Reg Please refer to the Financial Conduc reserved. 1839402
At iShares, we are committ transparency, consistency, analysing and interpreting for standardisation across
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⁷ BlackRock Investment Stewardship; Protecting our clients’ assets for the long- term, July 2021.
⁷ BlackRock Investment Stewardship; Protecting our clients’ assets for the long- term, July 2021.
⁷ BlackRock Investment Stewardship; Protecting our clients’ assets for the long- term, July 2021.
⁷ BlackRock Investment Stewardship; Protecting our clients’ assets for the long- term, July 2021.
In the first half of 2021, 48 launched industry wide in a growing number of sust products available, invest that are built with quality provider that is aligned to fast-changing sustainable
The BlackRock Sustainable classifies iShares ETFs and to four sustainable approa
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