BlackRock has announced enhanced Environmental, Social, and Governance (ESG) screens and risk management policies to strengthen the sustainability credentials of its ETFs and manage potential conflicts of interest within the BlackRock Group.
Material actions and disclosures
BlackRock applies ESG screens to remove companies that have exposure to, or ties with, activities such as Controversial Weapons, Fossil Fuel Extraction & Reserves, Thermal Coal Based Power Generation, Tobacco, Civilian Firearms, Nuclear Weapons, and United Nations Global Compact Violators. The screens are based on specific definitions and data sourced from third-party providers and are not constituted in the indexes of the Funds.
The Funds are in the ‘Uplift’ category on the BlackRock Sustainable Investing Platform, with over 50% of their investments classified as ‘Uplift’. These ETFs either tilt toward securities with a higher MSCI ESG rating or have an allocation to green bonds.
Forward commitments
BlackRock has outlined plans to manage conflicts of interest inherent to its business through established policies and procedures. The company aims to manage these conflicts in a fair and equitable manner, considering the interests of its clients.
The company also intends to continue monitoring and supervising the services provided by its related parties to ensure compliance with the Australian Financial Services (AFS) licence requirements.
BlackRock’s risk management framework includes adherence to a strong internal control structure, a single technology platform, straight-through-processing operations, and a robust compliance environment.