Sustainable Investing for Financial Advisors

The sustainable transformation is changing the way companies and governments operate. Early investors can benefit as there will be meaningful winners and losers in every sector and industry.

Let’s flashback to driving a car 15 years ago. Drivers would use rear and side view mirrors to merge, back up, and park. Today, thanks to advancements in technology, we have cars with rear view cameras, collision warnings, and side view sensors. These evolved safety features give drivers a more complete view of their surroundings, helping them make better decisions.

The same thing is happening with investing. While traditional financial analysis still anchors investment decisions, the greater availability of sustainable data today gives investors a more holistic view of the companies they invest in.

Sustainable investing uncovers Environmental, Social, and Governance (or ESG)-related risks and opportunities that traditional security analysis may overlook. By giving investors a more complete view, sustainable investing helps identify companies that may be better positioned for long-term growth. Let’s zoom in.

Environmental Risks increasingly threaten company profitability through extreme weather, rising sea levels or pollution and waste. Companies exposed to frequent extreme weather events, near the water, or in a wildfire zone, may face disruptions to their operations and threaten their long-term performance.

Product liability, health and safety, and data privacy are all examples of Social risks to a

company. Companies that overlook data security risks may be susceptible to hackers or data breaches that can quickly drive down a stock price.

Board quality and diversity, fair CEO pay, and accounting practices are all Governance risks. Companies with a diverse and independent board of directors can help reduce the risk of oversight, fraud, and bribery.

Sustainable investing doesn’t replace traditional financial analysis – it supplements and enhances it. BlackRock empowers investors to assess ESG risks in their portfolio construction process and makes it easy to get started with solutions across both iShares ETFs and BlackRock active mutual funds.

Regardless of your views on the future, long-term success is one goal that unifies all investors. BlackRock believes that investments that consider E, S and G metrics can help you pursue long-term success of not just your portfolio, but the world.

Sustainable starter kit

Prepare for client conversations with this sustainable education content.

Grow your business

As you think about engaging existing and new clients, sustainable investing can be a great place to start.

High-net-worth individuals, millennials, and women have expressed interest or already invested in sustainable assets. Help them get their share.¹

Spark the conversation

Use this four-step conversation guide to engage new and existing clients about their sustainable goals.

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A guide for your clients

Are your clients asking about sustainable investing? Share this client-friendly guide with them for the why, what and how of sustainable investing.

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Solutions to help meet client goals

Find what's appropriate for your clients as you look to incorporate sustainable investing in their portfolios. Consider these sustainable building blocks as a way to get started.

Add to your core Complement your core Model portfolios

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Performance data quoted represents past performance and guarantee of future results. Investment returns and principles may fluctuate so that an investor's shares, when redeemed, worth more or less than their original cost. All returns assume reinvestment of dividends of capital gains. Current performance may be lower or higher than that shown. Refer to blackrock.com for most recent month-end performance.