BlackRock launches world ESG insights equity fund
BlackRock has launched a fund designed to simplify environmental, social, and governance investing through a focus on factors that demonstrate materiality for investors.
The Authorised Contractual Scheme World ESG Insights Equity Fund is underpinned by BlackRock's existing ESG framework, designed to overweight companies it believes may benefit from capturing ESG risks while also aiming for a 50% reduction in carbon intensity compared to the FTSE Developed Index.
The ESG framework also aggregates data from multiple sources into 15 proprietary sustainable descriptors that encompass ESG issues. The descriptors are mapped against a sector-specific materiality matrix BlackRock said is then used to produce a score for each company "in order to maximise the portfolio's ESG profile".
The 15 descriptors are captured in the separate themes of the 'E'- a company's exposure and management of risks and opportunities associated with the transition to a low carbon economy, the 'S' - issues reflecting how corporations work with their internal and external workforce and stakeholders, and the 'G' - focus on good corporate governance structures and behaviours.
BlackRock said the fund will also incur regular reporting including ESG and carbon metrics aligned to the UN's Sustainable Development Goals and the aims of the Paris Agreement. Jonathan Adams and Andrew Bertolotti will manage the ACS World ESG Insights Equity Fund.
