Are Investments Pots sustainably invested?
‘Sustainable investments’ are investment approaches that consider environmental, social, governance and other sustainability factors (sometimes called ESG funds) to varying degrees.
The funds we offer are not explicitly ESG funds, but they aim to invest your money in things that are 30% less carbon intensive (that’s the amount of carbon a company produces relative to its sales). This is compared to similar funds which don't consider carbon emissions when investing.
The funds also aim to invest:
at least 80% of the money which they allocate to government bonds into other funds with exposure to bonds issued by countries that have 'improved ESG Credentials' meaning a Moody's ESG rating of BB or above.
at least 80% of the money which is invested in things other than government bonds into other investment funds which apply ESG related criteria to their investments (e.g. by tracking an index which filters out investments that don’t meet certain standards).
The Adventurous fund allocates no, or very little, money towards government bonds (but this could change in future).
If you want to learn more about what the funds invest in, including how carbon intensity is measured, and how much the funds are invested in different kinds of businesses, see the sections headed ‘Sustainability Characteristics’ and ‘Business Involvement’ for each fund on the BlackRock website:
You can also find the funds’ prospectuses on those pages, which provide lots more detail about how they approach issues like sustainability.
