Investment giant BlackRock announced today several sustainability-focused upgrades to the benchmarks underlying the iShares ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. Enhanced UCITS ETF range, which will see the $9 billion AUM suite become the largest climate-aligned ETF range.
The changes to the ETFs’ benchmarks, the MSCI ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. Enhanced Focus Indices, include updates to meet the EU’s Climate Transition Benchmark (CTB) requirement. Introduced as part of the EU Action Plan on Sustainable Finance, the EU’s Climate Transition Benchmark label indicates that a benchmark’s underlying assets are selected, weighted or excluded in a way that ensures the benchmark is aligned with a 1.5ºc warming trajectory, incorporating at least a 30% emissions reduction in greenhouse gas (GHG) emissions relative to the market index, and including Scope 3 emissions in its carbon intensity requirements.
The benchmarks have also been upgraded to include more stringent screens for other ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. issues, including conventional weapons, environmentalEnvironmental criteria consider how a company performs as a steward of nature. harm, and unconventional oil and gas.
The changes will see the ETFs change their classification under the EU’s SFDR regulation to Article 9, indicating that the funds support sustainable investment.
Manuela Sperandeo, BlackRock’s EMEA Head of Sustainable Indexing said:
“These improvements to the iShares ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. Enhanced UCITS ETF range raise the standard for incorporating environmentalEnvironmental criteria consider how a company performs as a steward of nature. characteristics into sustainable ETFs. For the first time, ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. and climate considerations, in line with EU regulation, are united into a range of ETFs offering a choice of exposures covering global equities.
“Our focus continues to be on aligning ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. ETFs with emerging standards in sustainable investing and offering clients more choice when seeking to implement their sustainability goals.”
Remy Briand, Head of ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. and Climate at MSCI, added:
“Incorporation of the EU CTB in the MSCI ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. Enhanced Focus Indexes reflects investor demand to drive the transition to a 1.5°C world. The outcome of this consultation enables MSCI to continue to provide industry-leading ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. and Climate Indexes, some of which enable investors to incorporate decarbonization alongside ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. with close-alignment to the MSCI parent index.”
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