Investing for a sustainable future

How to invest sustainably

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.

There is a broad spectrum of ways to incorporate sustainable thinking into your portfolio.  At BlackRock, we separate them into two main categories: avoid and advance.  From screened funds to the integration of ESG ratings, to more targeted impact investments, within these categories, there is a range of solutions on offer that could empower investors to invest sustainably, whatever their financial objectives.

Understanding sustainable investment solutions

TapClick the plus to discover more about each strategy in practice.

AVOID

Eliminating exposures
to certain sectors
or activities

  • Screened
    Removal of certain companies based on specific criteria such as business involvement, sector, or controversy.
    • Climate: Ex Fossil Fuels
    • Industry: Ex Controversial Weapons, ex Tobacco
    • Geography: Sanctioned countries
    • Religious: Christian, Islamic

ADVANCE

Aligning capital with certain
behaviours, activities or outcomes

  • ESG
    Rules-based approach to selecting companies based on ESG ratings. ESG ratings are a shorthand for evaluating a company’s commitment to sustainable business practices
    ESG best-in-class investing:

    Exposure to companies with the strongest ESG ratings compared to industry peers.

    This can help investors maintain traditional sector diversification while removing companies susceptible to scandals or other reputational risks

  • Thematic
    Focus on a particular E, S, or G issue, for example carbon emissions or the diversity of a company’s workforce. Particular issues are weighted in a thematic sustainable investment solution
    Environmental focus:
    • Low Carbon
    • Clean Energy
    Social focus:
    • Diversity & Inclusion
    • Human Capital
  • Impact
    Identification of a specific non-financial outcome as a goal of the investment solution, alongside financial returns.
    Provides dedicated reporting on progress toward that outcome as a part of the investment solution
    • Equities: Impact Equity
    • Fixed income: Impact Bonds, Green Bonds
    • Private Market: Global Renewable Power

Explore iShares sustainable solutions

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.