PI Partnership – iShares

artnership – BlackRock

For professional clients only

Capital at risk. This information should not be relied upon as investment advice, or a recommendation regarding any products, strategies. The environmental, social and governance (“ESG”) considerations discussed herein may affect an investment team’s decision to invest in certain companies or industries from time to time. Results may differ from portfolios that do not apply similar ESG considerations to their investment process.


Here are the five reasons why we believe sustainable indexing gives investors the clarity they need to build more sustaina- ble portfolios.

1. Indexing puts you in control of what type of sustainable investor you want to be. Sustainable investing is not one size fits all and means different things to different investors. The broad range of indices available, and the transparency they offer, allow you to pick the approach that’s appropriate for your portfolio.¹

2. Sustainable indexing can help provide a consistent approach across a portfolio. As investors transition to sustainable

investing, an indexing approach may help to ensure sustainability is expressed in a consistent way across the entire portfolio. Indices are inherently rules-based, so the screens and ESG integration they deploy are repeatable, regardless of asset class or exposure.

3. Sustainable indexing drives industry standardisation, promotes disclosure and can help motivate better corporate behaviour. We believe that indexing is bringing clarity to the sustainable investing space by providing transparency and accelerat- ing the adoption of new market stand- ards. This is one of many reasons why we believe investors will choose to put an extra 1 trillion USD into sustainable index assets in the next decade.²

1 Ways to align investment goals with iShares sustainable strategies Screened

Clients looking to exclude companies based on controversial

business practices ESG Enhanced

Clients investing to persue similar returns to a particular benchmark and maximise ESG scores


Clients seeking to achieve concentrated ESG holdings by rewarding top ESG performers


Clients pursuing specific sustainable themes based on a company’s

operations or sources of revenue


Clients investing for a measurable

sustainable outcome alongside financial returns

Source: BlackRock, as at 31 March 2020 2

Past and predicted growth of sustainable index assets (2009 - 2029)

ETF Index MF $220bn $44bn $15bn 2009 2014 2019 2024 2029

*Projected growth. BlackRock projection, April 2020, based on Morningstar data, as of March 2020. Subject to change. The figures are for illustrative purposes only and there is no guarantee the projections will come to pass.

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. Until 31 December 2020, issued by BlackRock Investment Management (UK) Limited, authorised and regulated by the Financial Conduct Authority. Registered office: 12 Throgmorton Avenue, London, EC2N 2DL. Tel: + 44 (0)20 7743 3000. Registered in England and Wales No. 02020394. For your protection telephone calls are usually recorded. Please refer to the Fi- nancial Conduct Authority website for a list of authorised activities conducted by BlackRock. From 1 January 2021, in the event the United Kingdom and the European Union do not enter into an arrangement which permits United Kingdom firms to offer and provide financial services into the European Economic Area, the issuer of this material is: (i) Black- Rock Investment Management (UK) Limited for all outside of the European Economic Area; and (ii) BlackRock (Netherlands) B.V. for in the European Economic Area, BlackRock (Netherlands) B.V. is authorised and regulated by the Netherlands Authority for the Financial Markets. Registered office Amstelplein 1, 1096 HA, Amsterdam, Tel: 020 – 549 5200, Tel: 31-20-549-5200. Trade Register No. 17068311 For your protection telephone calls are usually recorded. © 2021 BlackRock, Inc. All Rights Reserved. 1534910

32 | portfolio institutional | April 2021 | issue 102 $550bn*

To learn more about investing in sustain- able ETFs visit


4. Sustainable indices have shown resil- ience in difficult times. During last year’s market dislocation, a majority of sustainable indices exhibited resilience relative to broad market bench- marks.* We believe this is because sus- tainable indices are generally comprised of companies with higher profitability and lower levels of leverage than the broader market.

Risk: Past performance is not a reliable indicator of current or future results and should not be the sole factor of consideration when selecting a pro- duct or strategy.



*Source: BlackRock with Q1 2020 data from Bloom- berg and Morningstar as of May 7, 2020. Over 90% of sustainable indices outperformed their parent benchmark during this period of the heightened market uncertainty and drawdown.

5. Index fund asset managers with active investment stewardship seek to drive long-term change. Indexing amplifies the impact of company engagements because index investors typ- ically take a long-term view. Those who are sustainability-minded can exercise influence with companies through engagements across environmental, social and governance topics.



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