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.
WHY CLIMATE TRANSITION AWARE ETFs?
Many companies in higher emitting sectors are undergoing transformations1, and their efforts play a critical role in the process of decarbonisation. Investors looking to access companies invested in the transition to a low-carbon economy can now gain exposure to companies with credible targets while staying close to traditional benchmarks.
Incorporating forward-looking metrics, iShares MSCI Climate Transition Aware ETFs can help investors access companies with credible science-based targets and transition solution providers with sector neutrality.
Through these building blocks, investors can:
- Incorporate forward-looking metrics
Take an investment approach underpinned by Science Based Targets (SBTi). - Access a transparent, sector-neutral strategy
Take a bottom-up approach to company selection, including carbon emissions intensity. - Invest in transition solution providers
Access companies which generate green revenues as defined by MSCI.2
EXPLORE iSHARES CLIMATE TRANSITION AWARE FUND RANGE
iShares offers the largest indexing platform by AUM in Europe3 providing investors with choice to align to their investment objectives.
iShares MSCI Climate Transition Aware ETFs range can help investors access broad building blocks for their portfolio, incorporating forward-looking metrics, while aiming to maintain an exposure to sectors similar to that of traditional market benchmarks.
The iShares Climate Transition Aware ETF range includes the following funds across a variety of different exposures. The ETF range includes:
After applying exclusionary screens to businesses, the MSCI Transition Aware Select Indices are constructed from an original Index by excluding investments in companies based on the following exclusion criteria:
Forward looking metrics
The indices provide a clearly defined pathway for investors to reduce emissions, selecting companies with approved science-based targets (SBTI) to help future-proof business growth.
Green revenues
The indices look at transition solution providers by selecting companies who derive a portion of their revenues from activities with positive environmental impact.
Emissions reductions targets
The indices rank companies with emissions reduction targets within each GICS sector by carbon emissions intensity and selects the top 50%.
With iShares, clients have a partner who can bring together choice across a variety of strategies across global and regional exposures, investor-centric analytics and BlackRock expertise.
Choice
At iShares, we provide investors looking to incorporate sustainability and/or transition-related considerations into their portfolio with choice across the largest indexing range in the industry. With over US$873B in sustainable and transition AUM in Europe, iShares’ scale provides investors with a vast range of products across asset classes and themes.4
Innovation
We’re constantly innovating to enable our ETFs to expand across the world of investments. iShares innovates for and with its clients – like the Climate Transition Aware range, we work with index providers to develop new strategies and unlock new opportunities for investors.
Expertise
iShares can leverage BlackRock expertise when helping investors consider climate risk and seek to capture opportunities for portfolios. Our team of in-house specialists, including sector specialists and climate scientists, uncovers insights that empower investment decisions.
Video 2:31
INVESTING IN THE LOW-CARBON TRANSITION
As investors navigate the transition to a low-carbon economy, incorporating climate considerations into their portfolios could help mitigate risk and maximize investment opportunities. Listen to EMEA Head of iShares, Manuela Sperandeo to find out more.
FINAL: iShares Climate Transition Aware – launch video
Location: BlackRock Offices
Speaker: Manuela Sperandeo TBC
For Professional Clients and Qualified Investors only
Capital at risk
[Animated Graphic Images] iShares Climate Transition Aware ETFs
Many companies in sectors with higher carbon emissions are undergoing transformations1, and their efforts play a critical role in the process of decarbonisation.
Source: 1Science Based Targets, Accessed as at 19.03.24
Our research shows that 60% of European investors have started shifting their portfolios towards low-carbon transition investing strategies.2
Source: 2BlackRock, Investor market research, as at 31.12.23,
As they think about their portfolios' decarbonisation journey, they are looking for solutions that allow them to stay invested in sectors - like energy - which may have higher emissions today but remain crucial to the transition.2
Source: 2BlackRock , Investor market research, as at 31.12.23,
At iShares, we have launched our new Climate Transition Aware range, which take a simple and transparent to select companies while aiming to maintain an exposure to sectors similar to that of traditional benchmarks. Using forward looking metrics the suite allows investors to get exposure to companies that set credible targets and are embarking on their decarbonisation journey, as well as providers of solutions critical to the transition.
So how do these ETFs work?
This strategy selects companies that meet at least one of the three following selection criteria.
The first selection criteria is that the ETF includes companies with SBTi approved science-based metrics.3
Source: 3Science Based Targets, Accessed as at 19.03.24
The second selection criteria includes transition solution providers by selecting companies that have 20% or more green revenues as defined by MSCI.4
Source: 4MSCI, Climate Data Metrics, as at 31.03.24
And finally, the third criteria, ranks companies with emissions reduction targets by carbon intensity and selects the top 50%.
Through the power of BlackRock’s proprietary research5, global expertise and the largest indexing platform in Europe6, we’re constantly innovating to enable choice and expand the world of investments through ETFs.
Risk Warning: 5There is no guarantee that research capabilities will contribute to a positive investment outcome.
Source: 6Bloomberg, BlackRock, Market Insights, as at 31.03.24,
We can help investors address their challenges, manage risks, and tap into potential opportunities generated by the transition to a low-carbon economy.
BlackRock Transition Investing Platform: Our Transition Investing Platform includes private market funds, transition deals, and public market portfolios whose principal strategy either through portfolio objective or investment selection focuses on preparing for, being aligned to, benefitting from and/or contributing to a low-carbon economy. Some transition investments are portfolio investments in BlackRock private funds, which may also invest in deals that are not transition. Investments presented are made by BlackRock’s funds and are not intended to represent potential direct investment opportunities.
This document is marketing material. Before investing please read the Prospectus and the PRIIPs KID available on www.ishares.com/it, which contain a summary of investors’ rights.
Risk Warnings
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.
Past performance is not a reliable indicator of current or future results and should not be the sole factor of consideration when selecting a product or strategy.
Changes in the rates of exchange between currencies may cause the value of investments to diminish or increase. Fluctuation may be particularly marked in the case of a higher volatility fund and the value of an investment may fall suddenly and substantially. Levels and basis of taxation may change from time to time and depend on personal individual circumstances.
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