Sustainable investing at BlackRock Fundamental Equities

Actively invested in sustainability

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

BlackRock Fundamental Equities aims to guide investors through the challenges and opportunities presented by the vast reallocation of capital toward sustainable assets – with a focus on expertise, innovation and partnership. Watch the videos and read the content below to find out more.

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.

Partnership and the circular economy

Featuring

Evy Hambro, Global Head of Thematics and Sector Investing, Black Rock Fundamental Equities

Sumana Manohar, Head of Thematic Research, BlackRock Fundamental Equities

On-screen question: How do you help clients position portfolios for the net-zero economy?

We are committed to helping clients navigate the transition to the net zero economy.

We strive to determine how the world is changing, understand the disruptive forces that can catalyse these changes, and identify companies that can succeed in this environment.

There is no guarantee that research capabilities will contribute to a positive investment outcome.

Often that means those companies with a credible plan to move from brown to green.

The steel industry is a good example. Steel is essential for solar and wind generation – but steel production accounts for around 7% of global carbon emissions.

So innovation around green hydrogen and carbon capture -- to put the industry on a path to net zero steel --can have a hugely positive impact on the environment.

Steel is also infinitely recyclable, and our circular economy team does a lot of work – in partnership with the Ellen MacArthur Foundation – to identify companies that develop other innovative ways of reducing waste and preserving the world’s resources.

On-screen question: What exactly is the circular economy?

The circular economy seeks to address three sustainability challenges – waste, biodiversity loss, and climate change – with an emphasis on recycling and regeneration.

But this can mean different things in different sectors. For example, it’s easy to recycle a beverage can, but not so easy to recycle cement.

So, we partner with the Ellen MacArthur Foundation to combine their expertise with our research and analytics.

This partnership helps us identify companies with circular solutions to some of the world’s greatest environmental challenges – such as how to decarbonize industries where the energy source can’t easily be replaced with renewable energy.

We believe this approach can lead some attractive investment opportunities for our clients – and also a cleaner world.

For Italy: This document is marketing material: Before investing please read the Prospectus and the KID available on www.blackrock.com/it , which contain a summary of investors’ rights.

Risk Warnings

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.

Changes in the rates of exchange between currencies may cause the value of investments to diminish or increase. Fluctuation may be particularly marked in the case of a higher volatility fund and the value of an investment may fall suddenly and substantially. Levels and basis of taxation may change from time to time.

Important information

In the UK and Non-European Economic Area (EEA) countries: this is Issued by BlackRock InvestmentManagement (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.

For your protection telephone calls are usually recorded. Please refer to the Financial Conduct Authority website for a list of authorised activities conducted by BlackRock.

In the European Economic Area (EEA): this is Issued by 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.

In Italy: For information on investor rights and how to raise complaints please go to

https://www.blackrock.com/corporate/compliance/investor-right available in Italian.

 For investors in Switzerland: This document is marketing material.

In South Africa: Please be advised that BlackRock Investment Management (UK) Limited is an authorised Financial Services provider with the South African Financial Services Board, FSP No. 43288.

Any research in this document has been procured and may have been acted on by BlackRock for its own purpose. The results of such research are being made available only incidentally. The views expressed do not constitute investment or any other advice and are subject to change. They do not necessarily reflect the views of any company in the BlackRock Group or any part thereof and no assurances are made as to their accuracy.

This document is for information purposes only and does not constitute an offer or invitation to anyone to invest in any BlackRock funds and has not been prepared in connection with any such offer.

© 2023 BlackRock, Inc. All Rights reserved. BLACKROCK, BLACKROCK SOLUTIONS, and iSHARES are trademarks of BlackRock, Inc. or its subsidiaries in the United States and elsewhere. All other trademarks are

those of their respective owners.

FOR MORE INFORMATION: blackrock.com

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.

Partnership and the circular economy

Featuring

Evy Hambro, Global Head of Thematics and Sector Investing, Black Rock Fundamental Equities

Sumana Manohar, Head of Thematic Research, BlackRock Fundamental Equities

On-screen question: How do you help clients position portfolios for the net-zero economy?

We are committed to helping clients navigate the transition to the net zero economy.

We strive to determine how the world is changing, understand the disruptive forces that can catalyse these changes, and identify companies that can succeed in this environment.

There is no guarantee that research capabilities will contribute to a positive investment outcome.

Often that means those companies with a credible plan to move from brown to green.

The steel industry is a good example. Steel is essential for solar and wind generation – but steel production accounts for around 7% of global carbon emissions.

So innovation around green hydrogen and carbon capture -- to put the industry on a path to net zero steel --can have a hugely positive impact on the environment.

Steel is also infinitely recyclable, and our circular economy team does a lot of work – in partnership with the Ellen MacArthur Foundation – to identify companies that develop other innovative ways of reducing waste and preserving the world’s resources.

On-screen question: What exactly is the circular economy?

The circular economy seeks to address three sustainability challenges – waste, biodiversity loss, and climate change – with an emphasis on recycling and regeneration.

But this can mean different things in different sectors. For example, it’s easy to recycle a beverage can, but not so easy to recycle cement.

So, we partner with the Ellen MacArthur Foundation to combine their expertise with our research and analytics.

This partnership helps us identify companies with circular solutions to some of the world’s greatest environmental challenges – such as how to decarbonize industries where the energy source can’t easily be replaced with renewable energy.

We believe this approach can lead some attractive investment opportunities for our clients – and also a cleaner world.

For Italy: This document is marketing material: Before investing please read the Prospectus and the KID available on www.blackrock.com/it , which contain a summary of investors’ rights.

Risk Warnings

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.

Changes in the rates of exchange between currencies may cause the value of investments to diminish or increase. Fluctuation may be particularly marked in the case of a higher volatility fund and the value of an investment may fall suddenly and substantially. Levels and basis of taxation may change from time to time.

Important information

In the UK and Non-European Economic Area (EEA) countries: this is Issued by BlackRock InvestmentManagement (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.

For your protection telephone calls are usually recorded. Please refer to the Financial Conduct Authority website for a list of authorised activities conducted by BlackRock.

In the European Economic Area (EEA): this is Issued by 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.

In Italy: For information on investor rights and how to raise complaints please go to

https://www.blackrock.com/corporate/compliance/investor-right available in Italian.

 For investors in Switzerland: This document is marketing material.

In South Africa: Please be advised that BlackRock Investment Management (UK) Limited is an authorised Financial Services provider with the South African Financial Services Board, FSP No. 43288.

Any research in this document has been procured and may have been acted on by BlackRock for its own purpose. The results of such research are being made available only incidentally. The views expressed do not constitute investment or any other advice and are subject to change. They do not necessarily reflect the views of any company in the BlackRock Group or any part thereof and no assurances are made as to their accuracy.

This document is for information purposes only and does not constitute an offer or invitation to anyone to invest in any BlackRock funds and has not been prepared in connection with any such offer.

© 2023 BlackRock, Inc. All Rights reserved. BLACKROCK, BLACKROCK SOLUTIONS, and iSHARES are trademarks of BlackRock, Inc. or its subsidiaries in the United States and elsewhere. All other trademarks are

those of their respective owners.

FOR MORE INFORMATION: blackrock.com

KEY POINTS

01

BlackRock Fundamental Equities aims to identify companies that can help clients achieve long-term, above-market returns. We believe that understanding the sustainability of business models is a core part of this process.

02

Fundamental research from impact and sustainable investing helps us to uncover innovative and financially attractive business models that are poised to address major social and environmental challenges.

03

For long-term investors with a focus on sustainability, what matters most may be not what companies are doing now, but the direction in which they are travelling and the pace at which they are changing.

Fundamental Equities builds sustainability into the investment process

We study companies rigorously and engage with them to build our investment insights. We are always innovating to enhance our investment process and leverage our unique set of data to help us identify leaders, enablers and improvers.
Leaders
“Best-in-class” companies that effectively manage environmental, social and governance (ESG) factors.
Enablers
Companies that provide innovative solutions to support economic, societal and climate transition.
Improvers
Companies showing demonstrable progress on sustainability and future transition plans.

Learn more about Fundamental Equities

We harness the power of human intellect, industry-leading technology and the global scale of BlackRock in our mission to deliver consistent, risk-managed market-beating results for our clients over the long term.