03 Prioritize Companies That May Beneft From The Transition To A Low-Carbon Economy

THE STRATEGY

The transition to a low-carbon economy has started, and we believe companies preparing for that reality can benefit. Funds can invest in companies based on exposure to, and management of, transition risks and opportunities. The BlackRock U.S. Carbon Transition Readiness ETF, for instance, focuses on companies that BlackRock believes are better positioned to benefit from the transition to a low-carbon economy. This ETF considers a company’s energy, water and waste management as well as energy production and clean technology involvement.

WHY IT MATTERS

“We believe that investors who don’t consider the effects of climate change on the global economy and asset prices aren’t seeing the whole picture. Emerging research suggests that companies that are most well adapted to a low-carbon economy are better positioned than peers to grow earnings, and that greenhouse gas efficiency has links to financial performance.”4

- Armando Senra, Head of iShares Americas

ETFs TO CONSIDER • BlackRock U.S. Carbon Transition Readiness ETF (Active)

Invest in large- and mid-capitalization U.S. equity securities that may be better positioned to benefit from the transition to a low-carbon economy.

• BlackRock World ex U.S. Carbon Transition Readiness ETF (Active)

Invest in large- and mid-capitalization world ex-U.S. equity securities that may be better positioned to benefit from the transition to a low-carbon economy.