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Capital at risk. All financial investments involve an element of risk. Therefore, the value of the investment and the income from it will vary and the initial investment amount cannot be guaranteed.
ESG analysis covers a broad range of environmental, social and governance topics which can help you invest sustainably.
Environmental
Climate change, Natural resources, Pollution and waste, Environmental opportunities
Social
Human capital, Product liability, Stakeholder opposition, Social opportunities
Governance
Corporate governance, Corporate behaviour
ESG investing can help investors look beyond traditional financial reporting to better understand a company’s long-term risk and return prospects. Even companies with healthy balance sheets or those which operate in tech-forward sectors can be susceptible to major news events that can influence stock prices.
ESG metrics can provide investors with a rules-based, transparent mechanism for identifying companies that may be prone to major controversies and can subsequently help investors seek less portfolio volatility over time.
Weather patterns
Water scarcity
Data security
Skills shortages
Accidents
Fraud
Shutdown
Strikes
ESG ratings are an objective evaluation of a company’s commitment to sustainable business practices:
The below example demonstrates how the make-up of ESG scores varies between the financials sector and the energy sector.
Tap the coloured bars to see the contribution of each factor to a company's overall ESG score
Source MSCI. For illustrative purposes only
ESG ratings and characteristics can help investors integrate more non-financial but material information into their investment process. Visit each fund’s product page to learn more about its ESG profile.
Explore iShares sustainable solutions
Read BlackRock's ESG investment statement
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.