AN INDEX SOLUTIONFOR EVERYSUSTAINABLE INVESTOR
From eliminating certain exposures to focusing on the top-rated environmental, social and governance (ESG) performers, there are many different ways to incorporate sustainable investing into the core of your portfolio.
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.
Risk: This information should not be relied upon as research, investment advice, or a recommendation regarding any products, strategies, or any security in particular. This is for illustrative and informational purposes and is subject to change. It has not been approved by any regulatory authority or securities regulator. 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.
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Explore ESG Strategies
- MSCI World
- MSCI Emerging
Markets - MSCI Emerging
Markets IMI - MSCI Europe
- MSCI USA
- MSCI Japan
Standard benchmark
The benchmark index only excludes companies engaging in certain activities inconsistent with ESG criteria if such activities exceed the thresholds determined by the index provider. Investors should therefore make a personal ethical assessment of the benchmark index’s ESG screening prior to investing in the Fund. Such ESG screening may adversely affect the value of the Fund’s investments compared to a fund without such screening.
ESG Screened
ESG Enhanced
SRI
Description
Broad exposure to a wide range of global companies within 23 developed countries
Core replacement with exclusionary screens
Traditional exposures reweighted to maximise ESG score within a tracking error target
Companies in the top 25% of each sector based on ESG scores, with controversial business area and values-based screens
Exclusions
Controversial business areas: civilian firearms, controversial weapons, nuclear weapons, oil sands, thermal coal, tobacco, as well as any company found in violation of the principles enshrined in the UN Global Compact.
Values-based: alcohol, adult entertainment, gambling, genetically modified organisms, nuclear power.
For further details regarding MSCI's methodology, see footnote1 in the source.
Companies with severe controversies: A controversy case is defined as an instance or ongoing situation in which company operations and/or products allegedly have a negative environmental, social, and/or governance impact. Each controversy case is assessed for the severity of its impact on society or the environment, and is consequently rated very severe, severe, moderate or minor. For further details regarding MSCI's methodology, see footnote2 in the source.
n/a
Controversial business areas
Controversial business areas,
Companies with severe controversies
Companies with severe controversies
Controversial business areas,
Values-based exclusions
Values-based exclusions
# of constituents
1,651
1,548
1,536
386
Tracking error (%)
Tracking error compared to traditional parent indexes since inception.
-
0.49
0.58
1.53
ESG score
The MSCI ESG quality score is calculated as the weighted average of an underlying holding's ESG scores. It is provided on a 0-10 scale, with 0 and 10 being the respective lowest and highest possible scores. MSCI scores underlying holdings according to their exposure to 37 industry-specific ESG risks, and their ability to manage those risks relative to peers. These issuer-level ESG scores correspond to an issuer-level ESG rating. For further details regarding MSCI’s methodology, see footnote3 in the source underneath this table.
5.91
5.95
7.04
8.06
Carbon intensity (sales)
A portfolio's weighted average carbon intensity is determined by calculating the carbon intensity (scope 1 + 2 emissions per million dollars of sales) for each portfolio company and then calculating the weighted average using the portfolio weight.
Scope 1 emissions are those from sources directly owned or controlled by the company, typically direct combustion of fuel in a furnace or vehicle.
Scope 2 emissions are those caused by the generation of electricity purchased by the company.
Scope 3 emissions include an array of indirect emissions resulting from activities such as business travel, the distribution of products by third parties, and the downstream use of a company's products (i.e. by customers).
For further details regarding MSCI's methodology, see footnote4 in the source.
175
114
121
129
ESG Screened
Standard Benchmark
ESG Enchanced
ESG Screened
SRI
ESG Enhanced
Standard benchmark
The benchmark index only excludes companies engaging in certain activities inconsistent with ESG criteria if such activities exceed the thresholds determined by the index provider. Investors should therefore make a personal ethical assessment of the benchmark index’s ESG screening prior to investing in the Fund. Such ESG screening may adversely affect the value of the Fund’s investments compared to a fund without such screening.
ESG Screened
ESG Enhanced
SRI
Description
Diversified exposure to a broad range of large- and mid-cap emerging markets companies
Core replacement with exclusionary screens
Traditional exposures reweighted to maximise ESG score within a tracking error target
Companies in the top 25% of each sector based on ESG scores, with controversial business area and values-based screens
Exclusions
Controversial business areas: civilian firearms, controversial weapons, nuclear weapons, oil sands, thermal coal, tobacco, as well as any company found in violation of the principles enshrined in the UN Global Compact.
Values-based: alcohol, adult entertainment, gambling, genetically modified organisms, nuclear power.
For further details regarding MSCI's methodology, see footnote1 in the source.
Companies with severe controversies: A controversy case is defined as an instance or ongoing situation in which company operations and/or products allegedly have a negative environmental, social, and/or governance impact. Each controversy case is assessed for the severity of its impact on society or the environment, and is consequently rated very severe, severe, moderate or minor. For further details regarding MSCI's methodology, see footnote2 in the source.
n/a
Controversial business areas
Controversial business areas,
Companies with severe controversies
Companies with severe controversies
Controversial business areas,
Values-based exclusions
Values-based exclusions
# of constituents
1,193
n/a
1,079
176
Tracking error (%)
Tracking error compared to traditional parent indexes since inception.
-
n/a
1.08
4.92
ESG score
The MSCI ESG quality score is calculated as the weighted average of an underlying holding's ESG scores. It is provided on a 0-10 scale, with 0 and 10 being the respective lowest and highest possible scores. MSCI scores underlying holdings according to their exposure to 37 industry-specific ESG risks, and their ability to manage those risks relative to peers. These issuer-level ESG scores correspond to an issuer-level ESG rating. For further details regarding MSCI’s methodology, see footnote3 in the source underneath this table.
4.42
n/a
5.55
6.77
Carbon intensity (sales)
A portfolio's weighted average carbon intensity is determined by calculating the carbon intensity (scope 1 + 2 emissions per million dollars of sales) for each portfolio company and then calculating the weighted average using the portfolio weight.
Scope 1 emissions are those from sources directly owned or controlled by the company, typically direct combustion of fuel in a furnace or vehicle.
Scope 2 emissions are those caused by the generation of electricity purchased by the company.
Scope 3 emissions include an array of indirect emissions resulting from activities such as business travel, the distribution of products by third parties, and the downstream use of a company's products (i.e. by customers).
For further details regarding MSCI's methodology, see footnote4 in the source.
325
n/a
191
172
ESG Screened
Standard Benchmark
ESG Enchanced
ESG Screened
SRI
ESG Enhanced
Standard benchmark
The benchmark index only excludes companies engaging in certain activities inconsistent with ESG criteria if such activities exceed the thresholds determined by the index provider. Investors should therefore make a personal ethical assessment of the benchmark index’s ESG screening prior to investing in the Fund. Such ESG screening may adversely affect the value of the Fund’s investments compared to a fund without such screening.
ESG Screened
ESG Enhanced
SRI
Description
Diversified exposure to over 2,800 large-, mid- and small-cap emerging markets companies
Core replacement with exclusionary screens
Traditional exposures reweighted to maximise ESG score within a tracking error target
Companies in the top 25% of each sector based on ESG scores, with controversial business area and values-based screens
Exclusions
Controversial business areas: civilian firearms, controversial weapons, nuclear weapons, oil sands, thermal coal, tobacco, as well as any company found in violation of the principles enshrined in the UN Global Compact.
Values-based: alcohol, adult entertainment, gambling, genetically modified organisms, nuclear power.
For further details regarding MSCI's methodology, see footnote1 in the source.
Companies with severe controversies: A controversy case is defined as an instance or ongoing situation in which company operations and/or products allegedly have a negative environmental, social, and/or governance impact. Each controversy case is assessed for the severity of its impact on society or the environment, and is consequently rated very severe, severe, moderate or minor. For further details regarding MSCI's methodology, see footnote2 in the source.
n/a
Controversial business areas
Controversial business areas,
Companies with severe controversies
Companies with severe controversies
Controversial business areas,
Values-based exclusions
Values-based exclusions
# of constituents
2,834
2,712
n/a
n/a
Tracking error (%)
Tracking error compared to traditional parent indexes since inception.
-
0.58
n/a
n/a
ESG score
The MSCI ESG quality score is calculated as the weighted average of an underlying holding's ESG scores. It is provided on a 0-10 scale, with 0 and 10 being the respective lowest and highest possible scores. MSCI scores underlying holdings according to their exposure to 37 industry-specific ESG risks, and their ability to manage those risks relative to peers. These issuer-level ESG scores correspond to an issuer-level ESG rating. For further details regarding MSCI’s methodology, see footnote3 in the source underneath this table.
4.38
4.45
n/a
n/a
Carbon intensity (sales)
A portfolio's weighted average carbon intensity is determined by calculating the carbon intensity (scope 1 + 2 emissions per million dollars of sales) for each portfolio company and then calculating the weighted average using the portfolio weight.
Scope 1 emissions are those from sources directly owned or controlled by the company, typically direct combustion of fuel in a furnace or vehicle.
Scope 2 emissions are those caused by the generation of electricity purchased by the company.
Scope 3 emissions include an array of indirect emissions resulting from activities such as business travel, the distribution of products by third parties, and the downstream use of a company's products (i.e. by customers).
For further details regarding MSCI's methodology, see footnote4 in the source.
332
239
n/a
n/a
ESG Screened
Standard Benchmark
ESG Enchanced
ESG Screened
SRI
ESG Enhanced
Standard benchmark
The benchmark index only excludes companies engaging in certain activities inconsistent with ESG criteria if such activities exceed the thresholds determined by the index provider. Investors should therefore make a personal ethical assessment of the benchmark index’s ESG screening prior to investing in the Fund. Such ESG screening may adversely affect the value of the Fund’s investments compared to a fund without such screening.
ESG Screened
ESG Enhanced
SRI
Description
Diversified exposure to a broad exposure to a wide range of european companies across the continent
Core replacement with exclusionary screens
Traditional exposures reweighted to maximise ESG score within a tracking error target
Companies in the top 25% of each sector based on ESG scores, with controversial business area and values-based screens
Exclusions
Controversial business areas: civilian firearms, controversial weapons, nuclear weapons, oil sands, thermal coal, tobacco, as well as any company found in violation of the principles enshrined in the UN Global Compact.
Values-based: alcohol, adult entertainment, gambling, genetically modified organisms, nuclear power.
For further details regarding MSCI's methodology, see footnote1 in the source.
Companies with severe controversies: A controversy case is defined as an instance or ongoing situation in which company operations and/or products allegedly have a negative environmental, social, and/or governance impact. Each controversy case is assessed for the severity of its impact on society or the environment, and is consequently rated very severe, severe, moderate or minor. For further details regarding MSCI's methodology, see footnote2 in the source.
n/a
Controversial business areas
Controversial business areas,
Companies with severe controversies
Companies with severe controversies
Controversial business areas,
Values-based exclusions
Values-based exclusions
# of constituents
442
417
416
113
Tracking error (%)
Tracking error compared to traditional parent indexes since inception.
-
0.86
0.70
2.72
ESG score
The MSCI ESG quality score is calculated as the weighted average of an underlying holding's ESG scores. It is provided on a 0-10 scale, with 0 and 10 being the respective lowest and highest possible scores. MSCI scores underlying holdings according to their exposure to 37 industry-specific ESG risks, and their ability to manage those risks relative to peers. These issuer-level ESG scores correspond to an issuer-level ESG rating. For further details regarding MSCI’s methodology, see footnote3 in the source underneath this table.
7.15
7.36
7.78
8.94
Carbon intensity (sales)
A portfolio's weighted average carbon intensity is determined by calculating the carbon intensity (scope 1 + 2 emissions per million dollars of sales) for each portfolio company and then calculating the weighted average using the portfolio weight.
Scope 1 emissions are those from sources directly owned or controlled by the company, typically direct combustion of fuel in a furnace or vehicle.
Scope 2 emissions are those caused by the generation of electricity purchased by the company.
Scope 3 emissions include an array of indirect emissions resulting from activities such as business travel, the distribution of products by third parties, and the downstream use of a company's products (i.e. by customers).
For further details regarding MSCI's methodology, see footnote4 in the source.
142
130
114
91
ESG Screened
Standard Benchmark
ESG Enchanced
ESG Screened
SRI
ESG Enhanced
Standard benchmark
The benchmark index only excludes companies engaging in certain activities inconsistent with ESG criteria if such activities exceed the thresholds determined by the index provider. Investors should therefore make a personal ethical assessment of the benchmark index’s ESG screening prior to investing in the Fund. Such ESG screening may adversely affect the value of the Fund’s investments compared to a fund without such screening.
ESG Screened
ESG Enhanced
SRI
Description
Diversified exposure to the U.S. stock market
Core replacement with exclusionary screens
Traditional exposures reweighted to maximise ESG score within a tracking error target
Companies in the top 25% of each sector based on ESG scores, with controversial business area and values-based screens
Exclusions
Controversial business areas: civilian firearms, controversial weapons, nuclear weapons, oil sands, thermal coal, tobacco, as well as any company found in violation of the principles enshrined in the UN Global Compact.
Values-based: alcohol, adult entertainment, gambling, genetically modified organisms and nuclear power.
For further details regarding MSCI's methodology, see footnote1 in the source.
Companies with severe controversies: A controversy case is defined as an instance or ongoing situation in which company operations and/or products allegedly have a negative environmental, social, and/or governance impact. Each controversy case is assessed for the severity of its impact on society or the environment, and is consequently rated very severe, severe, moderate or minor. For further details regarding MSCI's methodology, see footnote2 in the source.
n/a
Controversial business areas
Controversial business areas,
Companies with severe controversies
Companies with severe controversies
Controversial business areas,
Values-based exclusions
Values-based exclusions
# of constituents
639
599
591
150
Tracking error (%)
Tracking error compared to traditional parent indexes since inception.
-
0.51
0.53
2.98
ESG score
The MSCI ESG quality score is calculated as the weighted average of an underlying holding's ESG scores. It is provided on a 0-10 scale, with 0 and 10 being the respective lowest and highest possible scores. MSCI scores underlying holdings according to their exposure to 37 industry-specific ESG risks, and their ability to manage those risks relative to peers. These issuer-level ESG scores correspond to an issuer-level ESG rating. For further details regarding MSCI’s methodology, see footnote3 in the source underneath this table.
5.48
5.49
6.30
7.58
Carbon intensity (sales)
A portfolio's weighted average carbon intensity is determined by calculating the carbon intensity (scope 1 + 2 emissions per million dollars of sales) for each portfolio company and then calculating the weighted average using the portfolio weight
Scope 1 emissions are those from sources directly owned or controlled by the company, typically direct combustion of fuel in a furnace or vehicle.
Scope 2 emissions are those caused by the generation of electricity purchased by the company.
Scope 3 emissions include an array of indirect emissions resulting from activities such as business travel, the distribution of products by third parties, and the downstream use of a company's products (i.e. by customers).
For further details regarding MSCI's methodology, see footnote4 in the source.
181
107
119
133
ESG Screened
Standard Benchmark
ESG Enchanced
ESG Screened
SRI
ESG Enhanced
Standard benchmark
The benchmark index only excludes companies engaging in certain activities inconsistent with ESG criteria if such activities exceed the thresholds determined by the index provider. Investors should therefore make a personal ethical assessment of the benchmark index’s ESG screening prior to investing in the Fund. Such ESG screening may adversely affect the value of the Fund’s investments compared to a fund without such screening.
ESG Screened
ESG Enhanced
SRI
Description
Diversified exposure to the U.S. stock market
Core replacement with exclusionary screens
Traditional exposures reweighted to maximise ESG score within a tracking error target
Companies in the top 25% of each sector based on ESG scores, with controversial business area and values-based screens
Exclusions
Controversial business areas: civilian firearms, controversial weapons, nuclear weapons, oil sands, thermal coal, tobacco, as well as any company found in violation of the principles enshrined in the UN Global Compact.
Values-based: alcohol, adult entertainment, gambling, genetically modified organisms, nuclear power.
For further details regarding MSCI's methodology, see footnote1 in the source.
Companies with severe controversies: A controversy case is defined as an instance or ongoing situation in which company operations and/or products allegedly have a negative environmental, social, and/or governance impact. Each controversy case is assessed for the severity of its impact on society or the environment, and is consequently rated very severe, severe, moderate or minor. For further details regarding MSCI's methodology, see footnote2 in the source.
n/a
Controversial business areas
Controversial business areas,
Companies with severe controversies
Companies with severe controversies
Controversial business areas,
Values-based exclusions
Values-based exclusions
# of constituents
323
310
309
61
Tracking error (%)
Tracking error compared to traditional parent indexes since inception.
-
0.58
0.61
3.21
ESG score
The MSCI ESG quality score is calculated as the weighted average of an underlying holding's ESG scores. It is provided on a 0-10 scale, with 0 and 10 being the respective lowest and highest possible scores. MSCI scores underlying holdings according to their exposure to 37 industry-specific ESG risks, and their ability to manage those risks relative to peers. These issuer-level ESG scores correspond to an issuer-level ESG rating. For further details regarding MSCI’s methodology, see footnote3 in the source underneath this table.
5.65
5.70
6.26
7.78
Carbon intensity (sales)
A portfolio's weighted average carbon intensity is determined by calculating the carbon intensity (scope 1 + 2 emissions per million dollars of sales) for each portfolio company and then calculating the weighted average using the portfolio weight.
Scope 1 emissions are those from sources directly owned or controlled by the company, typically direct combustion of fuel in a furnace or vehicle.
Scope 2 emissions are those caused by the generation of electricity purchased by the company.
Scope 3 emissions include an array of indirect emissions resulting from activities such as business travel, the distribution of products by third parties, and the downstream use of a company's products (i.e. by customers).
For further details regarding MSCI's methodology, see footnote4 in the source.
104
77
71
58
ESG Screened
Standard Benchmark
ESG Enchanced
ESG Screened
SRI
ESG Enhanced
Sustainable fixed income strategies
Sustainable bond strategies may screen out controversial business areas and give a higher weighting to companies with the strongest commitments to positive environmental, social and governance (ESG) business practices.
All data sourced from BlackRock and MSCI, correct as at March 2020.
Sustainability characteristics and business involvement metrics are from MSCI, not BlackRock. Review the methodology behind the metrics: 1Business Involvement Screening Research, 2ESG Controversies, 3ESG Ratings, 4Index Carbon Footprint Metrics.
This material is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any financial instrument or product or to adopt any investment strategy.
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