Sustainable investing is simply smart investing

Sustainable investing seeks to drive positive social or environmental impact alongside financial results, allowing investors to accomplish more with their money.

Driving purpose and performance

Investors need not adjust their financial goals to invest with purpose. BlackRock’s sustainable funds are designed to meet the performance characteristics of traditional investments while targeting specific social impact objectives, such as improving the ESG (environmental, social, and governance) rating of an investment portfolio.

SIMILAR PERFORMANCE

VS

Traditional

MSCI Europe Index

13,50

Annualized 5 YR Return

3,25%
Dividend Yield
11,38%
Annualized 5 YR Standard Deviation

SUSTAINABLE

MSCI Europe SRI Index

14,87

Annualized 5 YR Return

3,08%
Dividend Yield
11,36%
Annualized 5 YR Standard Deviation

Source: MSCI as of 5/31/2017. Index returns are for illustrative purposes only. Index performance returns do not reflect any management fees, transaction costs or expenses. Indexes are unmanaged and one cannot invest directly in an index. Past performance does not guarantee future results. Index returns do not represent actual Fund performance. For actual fund performance, please visit www.iShares.com/ch or www.blackrock.com/ch.

GREATER PURPOSE

The ESG rating difference between these two indices is 1.7x.

ESG Chart ESG Chart

The spectrum of sustainable investing

The sustainable investing landscape has evolved from a limited universe of investments focused on screening objectionable exposures to a range of solutions to achieve sustainable outcomes.

Exclusionary screens
Exclusionary screens
Exclusionary screens
Avoid exposure to companies who operate in controversial sectors such as fossil fuels, tobacco or weapons.
ESG Factors
ESG Factors
ESG Factors
Invest in companies whose practices rank highly by Environmental, Social and Governance (ESG) performance standards.
Impact Targets
Impact Targets
Impact Targets
Invest in companies whose products and solutions target measurable social or environmental impact.

Impact is on investors’ minds

Once a niche market, sustainable investing is becoming mainstream. Whether to mitigate risks, comply with regulation or target thematic impact, demand for these investment approaches has grown considerably.

Growth in sustainable assets in U.S. from 2012-16 Growth in sustainable assets in U.S. from 2012-16

Growth over 4 years
Source: Global Sustainable Investments Alliance

The number and diversity of investors responding to these opportunities are on the rise for several reasons:

Demographic shifts

Demographic shifts

A new generation of investors, including millennials and women, seek to put their money to work with purpose and want their investments to reflect their social and environmental concerns.

Government policies

Government policies

From COP21 to Canada’s carbon tax and France’s new energy transition law, sustainability-related regulations are driving investing in renewables and reporting on social and environmental considerations.

Evolving views on risk

Evolving views on risk

A growing number of investors believes that how a company manages the environmental and social aspects of its business can be signals of operational efficiency and productivity.

Moving from intention to implementation

We offer a three-step framework to help investors begin investing in a sustainable future:

Know what you own

Know what you own

Building on traditional portfolio analytics, understand your current exposures to relevant sustainability factors, such as carbon emissions and ESG score.

Translate into effective action

Translate into effective action

Set targets to improve the sustainability of your portfolio based on your personal objectives and identify the relevant investment options.

Measure your performance

Measure your performance

Track your sustainable outcomes alongside traditional financial performance data over time.

BlackRock’s responsibility

BlackRock is committed to sustainable outcomes and long-term value for our firm and our clients. Our intention is to maintain and act upon a long-term view in the way we conduct our business, invest, serve our clients and give back to the communities in which we and our clients live and work.

First and foremost, our job is to help grow our clients’ assets. In doing so, our unique investment platform, technology, and risk analytics enable us to identify and offer exposure to attractive sustainable investment opportunities, helping investors identify long-term investing opportunities to accomplish more with their dollars.

Environmental, social, and governance (ESG) factors relevant to a company’s business can provide essential insights into management effectiveness and thus a company’s long-term prospects.
Larry Fink

Red Oak submission ID: 284351