Investors’ top 5 ESG challenges


Investors in Europe, the Middle East and Africa (EMEA) expect to dramatically increase their sustainable
assets by 2025.

Percentage of assets invested sustainably, current and projected

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Here are the top 5 challenges that European investors face amid this shift.

1 Transitioning your portfolio

Building a sustainable portfolio tailored to specific requirements can be time consuming, and the financial and sustainable impact may be unclear.

Our approach: iShares offers transparency for investors across all our sustainable ETFs. Investors can:

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For investors looking for a ready-made portfolio:

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RISK: 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.

2 Making sense of the data

Investors must be able to find and interpret ESG data so they can assess the measurable output of their investments.

Our approach: At iShares, we are driving a push for standardisation across the industry to bring consistency and transparency to all investors.

In 2021:

• We leveraged over 1,200 sustainability metrics within Aladdin, our risk and portfolio management system.
• We also strengthened multiple partnerships with data analytics firms.
Source: BlackRock’s 2020 sustainability actions (as of Nov 2020)

3 Choosing the right product

Almost 50 new sustainable Exchange Traded Funds (ETFs) were launched in Europe in the first half of 2021 alone1.

With so many sustainable products, investors need clarity navigating the options.

Our approach:
To help investors choose an ETF that aligns with their goals, all iShares ETFs are classified according to BlackRock’s Sustainable Investing Framework:

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4 The emerging climate trend

Climate change has emerged as a crucial factor for investors to consider, yet investors often aren’t sure how to incorporate climate considerations into their portfolio.

Our approach: BlackRock has three approaches to climate investing to help investors select the best climate option for them.

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For illustrative purposes only. The above list is not exhaustive but represents various ways investors can
take specific climate objectives into consideration.

5 Company engagement

Investors want to ensure their sustainable fund provider is driving long-term value through engagement with companies.

Our approach: iShares is backed by BlackRock's investment stewardship team, which is one of the
largest in the industry². The team has more than 50 members and is located in 10 offices around the world.

This enables the team to engage with companies frequently, armed with a sound understanding of local
governance norms.

In fact, during the 2020-2021 proxy year, the team's engagements with investee companies hit a new record.

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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

To learn more about investing in sustainable ETFs, search ‘iShares ESG’ or click here

¹BlackRock Global Business Intelligence (as of Jun 30, 2021)

²BlackRock as of Dec 2021. Based on a review of select investment stewardship reports in 2020-2021.

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