An index solution for every sustainable investor

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An index solution for every sustainable 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.

The iShares range of sustainable funds is the broadest in the industry, covering a comprehensive spectrum of exposures and outcomes.

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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 our range

We built three sustainable equity ranges so investors can align their sustainable goals with the right index solution:

ESG Screened
1. ESG Screened
Funds that remove controversial business areas by screening out seven different sectors including tobacco, civilian firearms and thermal coal.
ESG Enhanced
2. ESG Enhanced
Funds that focus on companies with strong ESG ratings and lower carbon footprints, while limiting the deviation from traditional benchmark with built-in controls.
SRI
3. Socially responsible investing (SRI)
Funds that focus on companies with the highest ESG ratings relative to their peers in each sector.

Take a closer look

Pick a parent index to see how different sustainable approaches look in practice.

  • 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, un global compact violators

Values-based: Alcohol, adult entertainment, gambling, genetically modified organisms, nuclear power
For further details regarding MSCI's methodology, see footnote 1 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 consequently rated Very Severe, Severe, Moderate, or Minor. For further details regarding MSCI's methodology, see footnote 2 in the source.

n/a
Controversial business areas
Controversial business areas,
Companies with severe controversies
Controversial business areas,
Values-based exclusions
# of constituents
1,651
1,548
1,536
386
Tracking error (%)

Tracking error compared to traditional parent indices since inception.

-
0.49
0.58
1.53
ESG score

The MSCI ESG Quality Score is calculated as the weighted average of the 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 footnote 3 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 achieved by calculating the carbon intensity (Scope 1 + 2 Emissions / $M Sales) for each portfolio company and calculating the weighted average by portfolio weight.

Scope 1 emissions are those from sources owned or controlled by the company, typically direct combustion of fuel as 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, distribution of products by third parties, and downstream use of a company's products (i.e. by customers).

For further details regarding MSCI's methodology, see footnote 4 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, un global compact violators

Values-based: Alcohol, adult entertainment, gambling, genetically modified organisms, nuclear power
For further details regarding MSCI's methodology, see footnote 1 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 consequently rated Very Severe, Severe, Moderate, or Minor. For further details regarding MSCI's methodology, see footnote 2 in the source.

n/a
Controversial business areas
Controversial business areas,
Companies with severe controversies
Controversial business areas,
Values-based exclusions
# of constituents
1,193
n/a
1,079
176
Tracking error (%)

Tracking error compared to traditional parent indices since inception.

-
n/a
1.08
4.92
ESG score

The MSCI ESG Quality Score is calculated as the weighted average of the 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 footnote 3 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 achieved by calculating the carbon intensity (Scope 1 + 2 Emissions / $M Sales) for each portfolio company and calculating the weighted average by portfolio weight.

Scope 1 emissions are those from sources owned or controlled by the company, typically direct combustion of fuel as 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, distribution of products by third parties, and downstream use of a company's products (i.e. by customers).

For further details regarding MSCI's methodology, see footnote 4 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, un global compact violators

Values-based: Alcohol, adult entertainment, gambling, genetically modified organisms, nuclear power
For further details regarding MSCI's methodology, see footnote 1 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 consequently rated Very Severe, Severe, Moderate, or Minor. For further details regarding MSCI's methodology, see footnote 2 in the source.

n/a
Controversial business areas
Controversial business areas,
Companies with severe controversies
Controversial business areas,
Values-based exclusions
# of constituents
2,834
2,712
n/a
n/a
Tracking error (%)

Tracking error compared to traditional parent indices since inception.

-
0.58
n/a
n/a
ESG score

The MSCI ESG Quality Score is calculated as the weighted average of the 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 footnote 3 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 achieved by calculating the carbon intensity (Scope 1 + 2 Emissions / $M Sales) for each portfolio company and calculating the weighted average by portfolio weight.

Scope 1 emissions are those from sources owned or controlled by the company, typically direct combustion of fuel as 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, distribution of products by third parties, and downstream use of a company's products (i.e. by customers).

For further details regarding MSCI's methodology, see footnote 4 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, un global compact violators

Values-based: Alcohol, adult entertainment, gambling, genetically modified organisms, nuclear power
For further details regarding MSCI's methodology, see footnote 1 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 consequently rated Very Severe, Severe, Moderate, or Minor. For further details regarding MSCI's methodology, see footnote 2 in the source.

n/a
Controversial business areas
Controversial business areas,
Companies with severe controversies
Controversial business areas,
Values-based exclusions
# of constituents
442
417
416
113
Tracking error (%)

Tracking error compared to traditional parent indices since inception.

-
0.86
0.70
2.72
ESG score

The MSCI ESG Quality Score is calculated as the weighted average of the 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 footnote 3 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 achieved by calculating the carbon intensity (Scope 1 + 2 Emissions / $M Sales) for each portfolio company and calculating the weighted average by portfolio weight.

Scope 1 emissions are those from sources owned or controlled by the company, typically direct combustion of fuel as 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, distribution of products by third parties, and downstream use of a company's products (i.e. by customers).

For further details regarding MSCI's methodology, see footnote 4 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, un global compact violators

Values-based: Alcohol, adult entertainment, gambling, genetically modified organisms, nuclear power
For further details regarding MSCI's methodology, see footnote 1 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 consequently rated Very Severe, Severe, Moderate, or Minor. For further details regarding MSCI's methodology, see footnote 2 in the source.

n/a
Controversial business areas
Controversial business areas,
Companies with severe controversies
Controversial business areas,
Values-based exclusions
# of constituents
639
599
591
150
Tracking error (%)

Tracking error compared to traditional parent indices since inception.

-
0.51
0.53
2.98
ESG score

The MSCI ESG Quality Score is calculated as the weighted average of the 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 footnote 3 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 achieved by calculating the carbon intensity (Scope 1 + 2 Emissions / $M Sales) for each portfolio company and calculating the weighted average by portfolio weight.

Scope 1 emissions are those from sources owned or controlled by the company, typically direct combustion of fuel as 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, distribution of products by third parties, and downstream use of a company's products (i.e. by customers).

For further details regarding MSCI's methodology, see footnote 4 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, un global compact violators

Values-based: Alcohol, adult entertainment, gambling, genetically modified organisms, nuclear power
For further details regarding MSCI's methodology, see footnote 1 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 consequently rated Very Severe, Severe, Moderate, or Minor. For further details regarding MSCI's methodology, see footnote 2 in the source.

n/a
Controversial business areas
Controversial business areas,
Companies with severe controversies
Controversial business areas,
Values-based exclusions
# of constituents
323
310
309
61
Tracking error (%)

Tracking error compared to traditional parent indices since inception.

-
0.58
0.61
3.21
ESG score

The MSCI ESG Quality Score is calculated as the weighted average of the 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 footnote 3 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 achieved by calculating the carbon intensity (Scope 1 + 2 Emissions / $M Sales) for each portfolio company and calculating the weighted average by portfolio weight.

Scope 1 emissions are those from sources owned or controlled by the company, typically direct combustion of fuel as 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, distribution of products by third parties, and downstream use of a company's products (i.e. by customers).

For further details regarding MSCI's methodology, see footnote 4 in the source.

104
77
71
58

ESG Screened

Standard Benchmark

ESG Enchanced

ESG Screened

SRI

ESG Enhanced

iShares sustainable fixed income solutions

iShares sustainable bond funds 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.

Comprehensive suite of building blocks
Comprehensive suite of building blocks
ESG investing with business area screens
ESG investing with business area screens
Comparable costs to traditional fixed income ETFs
Comparable costs to traditional fixed income ETFs

Explore the product range

  • Corporate bonds
  • High yield bonds
  • Emerging markets bonds
  • Multi-sector bonds
  • Ultrashort bonds

Looking for all iShares sustainable funds?

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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.