BlackRock Integrates EU Benchmark Into Paris-Aligned ETFs

    Stockholm (NordSIP) – BlackRock, in partnership with MSCI, announced it was upgrading the methodology to include the European Union’s (EU) Climate Transition Benchmark (CTB) as criteria in its US$9 billion ESG enhanced ETF range, effective December 1st.

    The iShares MSCI ESG Enhanced UCITS ETF range include six funds focusing on Europe, EMU, Japan, World, USA and emerging markets. following this change, all of the ETFs will be reclassified as Article 9 SFDR and will also qualify to be distributed as ESG products in Germany as per the the German Investment Funds Association requirements.

    Existing exclusions from the CTB are controversial weapons, nuclear weapons, UN Global Compact violators, tobacco, civilian firearms, thermal coal and oil sands. The ETFs will also exclude controversial weapons and will introduce an environmental harm screen from the end of November 2022.

    By incorporating the CTB, the ETFs will implement a 30% carbon intensity reduction versus the parent index, a 7% year-on-year decarbonisation target and take into account Scope 3 emissions.

    “Investors can help support a successful response to climate change through their portfolio choices.  These improvements to the iShares ESG Enhanced UCITS ETF range raise the standard for incorporating environmental characteristics into sustainable ETFs.  For the first time, ESG 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 ESG ETFs with emerging standards in sustainable investing and offering clients more choice when seeking to implement their sustainability goals,” says Manuela Sperandeo, BlackRock’s EMEA Head of Sustainable Indexing.

    Filipe Albuquerque
    Filipe Albuquerque
    Filipe is an economist with 8 years of experience in macroeconomic and financial analysis for the Economist Intelligence Unit, the UN World Institute for Development Economic Research, the Stockholm School of Economics and the School of Oriental and African Studies. Filipe holds a MSc in European Political Economy from the LSE and a MSc in Economics from the University of London, where he currently is a PhD candidate.

    Latest Posts

    NordSIP Insights Handbook

    What else is new?