ESG Score Blackrock: A Guide to Making Informed Investment Decisions

BlackRock's ESG score is a crucial factor in making informed investment decisions, and it's essential to understand how it works. BlackRock uses a proprietary ESG score to assess the ESG risks and opportunities of its holdings.

The ESG score is based on a range of metrics, including greenhouse gas emissions, water usage, and waste management. This information is sourced from publicly available data and company reports.

Investors can view BlackRock's ESG scores on its website, providing transparency and accountability in the investment process.

ESG scores are used to measure the Environmental, Social and Governance (ESG) characteristics of a fund's underlying holdings, ranking them from CCC to AAA.

MSCI ESG Fund Ratings are based on the weighted average score of the holdings, making it possible to rank or screen mutual funds and ETFs.

Each fund or ETF scores a rating on a scale from CCC (laggard) to AAA (leader), with CCC indicating the lowest rating and AAA the highest.

These ratings are designed to provide insights across multiple dimensions, including carbon footprint, water exposure, or governance risks, which can be used for various purposes, such as aligning a portfolio to organizational values or identifying and reporting on measurable social or environmental impact.

More than 600 additional metrics are licensed to provide further insights, including carbon footprint, water exposure, and governance risks.

The MSCI ESG Fund Ratings are constructed using a methodology that can be explored for more information.

Investors can use these ratings to make informed decisions about their investments, such as selecting funds that align with their values or reducing exposure to certain risks.

ESG scores are becoming increasingly important in investment decisions, driven by a desire for greater transparency and a growing demand among millennials for sustainable investing. 75 million millennials are set to inherit a significant wealth transfer from baby boomers, and 86% of surveyed millennial investors express an interest in sustainable investing.

As a result, investment professionals are being asked to do a deep dive into a company's ESG factors and history with ESG issues before recommending an investment opportunity. This is reflected in the fact that 75% of millennial investors have intentionally stopped investing or declined to invest in a company because of the impact that company's products or services have on people's health and well-being.

To better understand ESG scores, here are some key statistics:

These statistics highlight the growing importance of ESG scores in investment decisions, particularly among millennials. As a result, investment professionals are looking for ways to incorporate sustainable investing into their clients' portfolios, with 75% of millennial investors expecting their financial professional to do a deep dive into a company's ESG factors and history with ESG issues.

You can use MSCI ESG Fund Ratings to gain insights into the ESG characteristics of funds and ETFs, offering greater transparency and accountability.

These ratings can be used by wealth and fund managers to screen for funds that align with client values, as well as to offer reporting on ESG characteristics of client investments.

Here are some ways MSCI ESG Fund Ratings can help:

BlackRock offers a robust suite of sustainable mutual funds and ETFs to help you find strategies that meet your investment and sustainability objectives.

Replacing core investments with sustainable funds can offer similar broad market exposure while improving your portfolio's sustainability profile.

The MSCI ESG Fund Ratings are designed to offer investors greater insights into the ESG characteristics of mutual funds and ETFs.

Sustainable investing is on the rise, with more options available for investors looking to adopt sustainable strategies.

BlackRock offers a robust suite of sustainable mutual funds and ETFs that can help you meet your investment and sustainability objectives.

The number of ESG & Climate-related funds in the market has been growing to meet demand, allowing you to find funds that align with your values.

With BlackRock's focus on ESG and Climate funds, you can tap into the latest ESG trends driving risk and opportunities.

BlackRock's ESG suite can help you grow your practice and express your clients' preferences in their portfolio with sustainable investing.