FINANCIAL PROFESSIONALS
OUTLOOK & INSIGHTS
BY TOPIC
DOCUMENTS
TAX RESOURCES
Seek to eliminate exposure to certain controversial business activities that pose risks or do not align with an investor's preferences.
Balance seeking a similar risk and return to the relevant broad market with seeking a more sustainable outcome.
Prioritize higher-rated ESG companies while extensively screening out controversial activities.
As climate considerations become more important to portfolio construction, investors may want to consider direct or indirect climate approaches to help align their portfolios with the transition to a low carbon economy.
Description
Funds that seek to reduce exposure to heavy carbon emitters; may include broad ESG funds with stringent fossil fuels-related screens.
Use case: broad building blocks
Use these funds as broad building blocks for diversified sustainable portfolios.
Description
Funds that allocate capital based on a company or government’s commitments and actions to transition, such as companies reducing their reliance on fossil fuels and setting science-based targets.
Use case: broad building blocks
Use these funds as broad building blocks for diversified sustainable portfolios.
Description
Funds that invest in a specific sustainable activity, such as clean energy, or investments directly tied to projects designed to advance environmental purposes, such as green bonds.
Use case: target exposure
Use these funds to gain targeted exposure to specific sustainable themes or strategies designed to deliver measurable environmental impact.
iShares ESG ETFs provide exposure to quality companies that may be better positioned to manage sustainability risks.