On and offshore wind turbines along a sunny flat coastline in the Netherlands

Delivering on sustainability as our standard in Europe

We believe sustainability risk and climate risk are investment risks, and that integrating sustainability considerations into all we do can deliver more resilient portfolios and better returns for investors. BlackRock welcomes SFDR as a true catalyst driving this integration, so here we detail how we are helping clients navigate the transition to more sustainable portfolios.

 


Our FAQs document contains all of the key information about how we’re supporting the transition to more sustainable portfolios and have enabled a significant number of portfolios to become Article 8 or 9 compliant. Read them here.

63%

of funds launched and repositioned in Europe last year were article 8 or 9.

74%

of active flows and 38% of index flows went into today’s Article 8 or 9 funds in 2020 for funds in scope under SFDR.

70%

of Fund launches/repositionings in Europe we expect to be Article 8 or 9 in 2021.

50+%

of European flagship AUM currently in Article 6 funds for which we will provide transition opportunities into Article 8 or 9 funds.

Source: BlackRock December 31, 2020.

Manuela S:

We need to empower investors to be able to compare sustainable solutions and this is exactly what SFDR is going to address.

Tom F:

It’s the first, really, all-encompassing approach across a whole region to bring sense to sustainable investing.

Tom:

We see three actors that really need to step and accelerate sustainable investing.  

Manuela:

First, investment managers like ourselves which under SFDR are going to start company-level disclosures as well as reporting on the investment products that they commercialize.

Manuela:

We need to empower investors to be able to compare sustainable solutions

Tom:

The second actor is those portfolio advisors to the end clients, the pension managers, the private banks, the retail banks. They have a duty to actually offer these products to their clients.

Tom:

And the final category is the economy at large.

Tom:

Companies need to understand that now they are being evaluated according to ESG principles because we know as investment managers that is how they will succeed in the future.

Tom:

So the more companies transition, the more choices we will have to build great portfolios. The less they transition, the more we’ll have to put them on the side

Manuela:

Europe has always been leading the charge in sustainable investing and I think SFDR is only going to accelerate this further.

Tom:

We realize it’s a turning point for the European markets. It’s going to finally give a bit of clarity to investors.

Capital at risk.  The value if investments and the income from them may go down as well as up and you may get back less than you invested.
Important information

This material is intended for information purposes only, and does not constitute investment advice, a recommendation or an offer or solicitation to purchase or sell any securities, funds or strategies. The opinions expressed are as of 8th March 2021 and are subject to change.

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"It's a turning point for European markets"

1 minute 40 with two of BlackRock’s leading experts on sustainable investing. What does SFDR mean for asset managers, wealth managers, pension managers, and for the economy at large?