At Blackrock, there is an increasing awareness that material environmental, social, and governance, also known as ESG factors, can be tied to a company’s long-term performance. More and more investors are looking to integrate sustainability insights and data into their traditional investment processes. By expanding access to data, insights, and learning on material ESG risks and opportunities in investment processes across the board, BlackRock realized that they could become better overall investors. Recently, BlackRock has been focusing a lot on helping their clients reach their long-term investment goals. They do this by providing resilient and well-constructed portfolios. BlackRock’s investment conviction is that sustainability and climate-integrated portfolios can provide better risk-adjusted returns to investors over the long-term. Also, it states that sustainability-related data provides an increasingly important set of tools to identify unpriced risks and opportunities within portfolios. BlackRock’s active investors are responsible for integrating material sustainability-related insights consistent with their existing investment process to improve long-term risk-adjusted returns. BlackRock’s firm-wide investment process is structured to identify ESG risks and opportunities alongside traditional measures within our active investment processes. ESG integration is part of both our dynamic investment process and index investment processes and oversight. BlackRock has a consistent framework for ESG integration that permits a diversity of approaches across different investment teams and strategies. ESG considerations that are material will vary by client objectives, investment style, sector, and market trends. Sustainability measures help inform the due diligence, portfolio construction, and monitoring processes of their actions and alternatives platforms, as well as their approach to risk management. In their index investments business, they work with index providers to expand and improve the universe of sustainable indexes. Their investment stewardship processes encourage the companies in which BlackRock’s clients are invested to manage and disclose material sustainability risks effectively.