RESOURCES TO HELP YOU INVEST SUSTAINABLY

72% of the U.S. population is interested in sustainable investing1, yet many investors still find the space confusing. At BlackRock, we’re committed to making sustainable investing as simple as traditional investing. Use the resources below to go from understanding the space to building sustainable portfolios.

Get comfortable

Understand sustainable investing

Get engaged

Start the sustainable investing conversation

Get invested

Build sustainable portfolios

1. GET COMFORTABLE

Understand sustainable investing

Sustainable investing is on the rise but confusion remains. Use these resources to understand sustainable investing and to get a handle on the different terms.

Video 3:04

What is sustainable investing?

Watch Sarah Kjellberg, Head of U.S. Sustainable ETFs at BlackRock, and Linda-Eling Lee, Head of ESG Research at MSCI, break down the terms.

Hi, I'm Sarah Kjellberg, Head of US iShares Sustainable ETFs, and I'm excited to kick off our sustainable investing video series with 'What is Sustainable Investing'. There are a lot of terms when it comes to sustainable investing, which can be confusing. I'm joined by Linda-Eling Lee, Head of ESG Research at MSCI, to provide some clarity.

 

To start, let's define sustainable investing. Sustainable investing is about investing in progress and recognizing that companies solving the world's biggest challenges may be best positioned to grow. Just as you've made lifestyle choices to align your beliefs, you can do the same with your investment portfolio. For more on this, let's turn to Linda from MSCI.

 

In practice, sustainable investing is the combination of traditional investment approaches with environmental, social, and governance, or ESG insights. ESG investing is just one way to access sustainable investing. It refers to the practice of evaluating and selecting companies or funds based on their business practices with the goal of identifying risks and opportunities related to ESG that may not be considered by traditional financial analysis. For example, ESG analysis provides a window into how a company treats their employees, have they had product safety issues, or have they been fined for polluting?

 

At BlackRock, we identify four main pillars or ways to incorporate sustainable investing into your portfolio — Screened, ESG, Thematic, and Impact Investing. First, Screened Investing eliminates exposures to companies or sectors that pose certain risks or violate an investor's values. Examples include fossil fuels, firearms, and tobacco.

 

Second, ESG Investing, which MSCI defined is about evaluating and selecting companies based on environmental, social, and governance issues to identify material risks and opportunities not captured by traditional financial analysis. Third, Thematic Investing — thematic investing focuses on exposure to a particular E, S, or G issue. Examples include investing in clean energy companies or companies with diverse workforces.

 

And lastly, Impact Investing, which seeks to achieve both a measurable and sustainable outcome alongside a financial return — an example can be a green bond that finances new solar panels. If you need more clarity on sustainable investing terminology, please consider taking a look at our guide to understanding sustainable investing terms.

 

Visit ishares.com to view a prospectus, which includes investment objectives, risks, fees, expenses, and other information that you should read and consider carefully before investing. Investing involves risk, including possible loss of principal.

Video 2:53

Why index ETFs for sustainable investing?

Sustainable investing is becoming mainstream. Over the next decade BlackRock projects global sustainable ETFs to rise to over $400 billion from $25 billion today.2 Learn more about sustainable ETFs.

Hi, I'm Sarah Kjellberg, Head of US iShares Sustainable ETFs. I'm here to continue our sustainable investing video series with 'Why Index ETFs for Sustainable Investing.' And I'm joined by Linda-Eling Lee, Head of ESG Research firm MSCI.

 

Sustainable investing is becoming mainstream as investors embrace the opportunity to align their long-term financial objectives with their sustainability objectives. Over the next decade, BlackRock projects global sustainable ETF assets to rise to $400 billion from $25 billion today. So the question now is, why not? Why not invest sustainably, especially since sustainable investing has never been easier with the rise of environmental, social, and governance, or ESG indexes, and ETFs that seek to track those indexes. For more on ESG indexing, let's turn to Linda from MSCI. Linda, what is an ESG index?

 

Well, an index is a set of securities designed to represent the performance of a market or strategy. Indexes are constructed and maintained according to a rules-based methodology. An ESG index can be very similar to broad market index, and they use ESG criteria as an input into the selection of securities. For example, an ESG index can exclude certain kinds of companies or be designed to focus on higher ESG rated companies.

 

Historically, there were a relatively small number of ESG indexes. In recent years, this has changed. Today, we have the ability to use better, more financially relevant ESG data in analytics to construct a wide range of ESG indexes. Now MSCI offers more than 1,000 ESG equity and fixed income indexes to meet the growing appetite for ESG products.

 

At BlackRock, we believe sustainable or ESG ETFs have already begun and will continue to play an important role in the future growth of sustainable investing. The growth and innovation of these indexes is providing investors a wider range of options to include ESG at the core of their portfolios as well as more targeted solutions with thematic and impact strategies. Investors can also benefit from lower cost, daily liquidity, tax efficiency, and holdings transparency typically offered by ETFs. For more information, please visit the sustainable landing page on ishares.com.

 

Visit ishares.com to view a prospectus, which includes investment objectives, risks, fees, expenses, and other information that you should read and consider carefully before investing. Investing involves risk, including possible loss of principal.

Want more clarity on sustainable investing terminology?

Understand the difference between ESG and sustainable.

2. GET ENGAGED

Start the sustainable investing conversation

Sustainable investing is a potent topic for conversations. For advisors, these resources can help foster client engagement and build sustainable advisory practices. All investors can use them to learn more about investing sustainably.

Start the conversation

Designed to help financial advisors engage clients and understand their sustainability interests.

101 investor guide

This investor guide answers four key questions to help get started with sustainable investing.

iShares sustainability report

Dive into specific sustainability metrics available on each iShares Sustainable ETF's product page.

3. GET INVESTED

Build sustainable portfolios

Sustainable investing is easier than ever with the rise of ESG indexes and ETFs that seek to track these indexes. Use these resources to start building sustainable portfolios.

Build portfolios

Designed to help financial professionals build sustainable portfolios as easily as traditional portfolios.

Choose the solution for you

Learn about BlackRock’s commitment to sustainable investing, and explore our sustainable product platform.