BlackRock Sustainable ETFs and Index Investments · ESG best in class index methodology - graph Source: MSCI, December 2016 MSCI index (equity) Bloomberg-Barclays index (fixed income)

BlackRock Sustainable ETFs and Index Investments

PROFESSIONAL CLIENTS / QUALIFIED CLIENTS / QUALIFIED INVESTORS ONLY

14 November 2017

Enrico CameriniHead of Institutional Clients iShares Italy

MKTG1117E-303081-902554

Risk indicators (Netherlands)

iShares MSCI EM SRI UCITS ETF iShares MSCI Europe SRI UCITS ETF iShares MSCI Japan SRI EUR Hedged

UCITS ETF iShares MSCI Japan SRI UCITS ETF iShares MSCI Europe UCITS ETF EUR

(Acc) iShares MSCI Japan UCITS ETF USD (Acc) iShares MSCI EM UCITS ETF USD (Acc)

iShares MSCI USA SRI UCITS ETF iShares Global Water UCITS ETF iShares MSCI USA UCITS ETF USD

(Acc)

iShares € Corp Bond SRI 0-3yr UCITS ETF

iShares € Corp Bond SRI UCITS ETF* BlackRock Bloomberg MSCI Green

Bonds index fund (FIDF)

iShares Global Clean Energy UCITS ETF

*Fund not launched yet

2PROFESSIONAL CLIENTS / QUALIFIED CLIENTS / QUALIFIED INVESTORS ONLYMKTG1117E-303081-902554

BlackRock Sustainable

MKTG1117E-303081-902554

BlackRock SustainableInvesting for a sustainable future

4

Investing for youWhat is important to you? Reducing your carbon footprint? Clean water? Gender equality?

These are some of the issues that BlackRock considers as a sustainable investor while seeking long-term growth.

Our long-term commitment to our clientsBlackRock takes corporate governance seriously and engages with our voice and vote on matters that can influence the long-term value of our client’s investments.

You don’t need to adjust your investment goals to invest with purposeOver the long term, ESG considerations have the potential to meaningfully contribute to a company’s financial performance.

Stewardship

Partnership

PerformancePerformance

PROFESSIONAL CLIENTS / QUALIFIED CLIENTS / QUALIFIED INVESTORS ONLYMKTG1117E-303081-902554

Global growth of sustainable assets

Demographic Shifts Organizations Facing Client Pressure

Asset Owners with Social Missions

Risks Posed by Global Challenges

Country–Imposed Regulations

Fund mandates demanding global ESG integration

New company governance requirements

Business models and industries changing in response to climate risks

Risks shifting long‐term return opportunity

Foundations aligning investments with mission

Family offices committed to positive impact

Stakeholder advocacy for social objectives

Client demand for sustainable investments

Transfer of wealth to millennial generation

Increasing number of women controlling private wealth

33%12%

UNITED STATESEUROPE $8.7T $6.6T$12.0T $10.8T

Source: Global Sustainable Investment Review 2016. Most widely used industry figure. Exclusionary screens, Environmental Social Governance (ESG), and Impact Investment Strategies

PROFESSIONAL CLIENTS / QUALIFIED CLIENTS / QUALIFIED INVESTORS ONLY 5MKTG1117E-303081-902554

Evolution of the sustainable investment market

Future migration of sustainable assets,

including new entrants

Source: 2016 Global Sustainable Investment Alliance Review

$12-16tn $1-2tn $0-0.5tn


Exclusionary Screens ESG Impact investingCurrent distribution of sustainable assets

Avoid exposures that

conflict with your social

objectives

Focus on companies that

align with your social and

financial objectives

Target outcomes that

advance your social and

financial objectives

6

Mainly institutional

clients in seg. mandates

Democratizing access to

systematic way of managing

event-related risks, with ESG

research leveraging big data

on ~10,000 stocks

MKTG1117E-303081-902554

Idiosyncratic event risks

Sources: MSCI ESG Reseach, December 2016.

7

Skills Shortages

Data Security

WaterScarcity

WeatherPatterns

StrikesFraudShutdownsAccidents

ESG : a risk management tool


Systematic risk factors

MKTG1117E-303081-902554

ESG rating

Environment

Climate Change

Carbon Emissions

Energy Efficiency

Product Carbon

Footprint

Financing Environmental

Impact

Climate Change

Vulnerability

Natural Capital

Water Stress

Biodiversity & Land Use

Raw Material Sourcing

Pollution & Waste

Toxic Emissions &

Waste

Packaging Material &

Waste

Electronic Waste

Env. Opportunities

Opportunities in Clean Tech

Opportunities in Green Building

Opportunities in Renewable

Energy

Social

Human Capital

Labor Management

Health & Safety

Human Capital Development

Supply Chain Labor

Standards

Product Liability

Product Safety & Quality

Chemical Safety

Financial Product Safety

Privacy & Data Security

Responsible Investment

Insuring Health & Demographic

Risk

Stakeholder Opposition

Controversial Sourcing

Social Opportunities

Access to Communication

Access to Finance

Access to Health Care

Opportunities in Nutrition &

Health

Governance

Corporate Governance

Board

Pay

Ownership

Accounting

Corporate Behavior

Business Ethics

Anti-Competitive

Practices

Corruption & Instability

Financial System

Instability

Pillar Theme “Universal” Issue

Pharma key Issues

Source: MSCI ESG Reseach, December 2016

8

ESG ratings


© August 2017 MSCI Inc. All rights reserved.

Between 2013 and 2015

MSCI’s controversy score flagged VW on controversies classified under the categories of product and service quality, bribery and fraud and collective bargaining

April 2015

VW’s overall governance score was lower than 72% of companies covered by MSCI ESG Research globally. It has been on a decline since last year

September 2015

Following the scandal VW further downgraded from BBB to CCC for MSCI ESG Ratings and from Yellow to Red Flag for MSCI controversy scores

2012 2013 2014 Aug 2015 Sept 2015 2016 Jul 2017 Aug 2017

BMW

DAIMLER

VW

AAA

AA

A

BBB

BB

B

CCC

2013 2015

ESG ratings

Case study: Volkswagen

Sources: MSCI ESG Reseach, US EPA and www.volkswagenag.com, August 2017. For illustrative purposes only. Reference to the names of each company mentioned in this communications is merely for explaining the investment strategy, and should not be construed as investment advice or investment recommendation of those companies.


Sustainable Index Products

MKTG1117E-303081-902554

BlackRock Sustainable Index Products

ESG

Select securities with strong Environmental, Social, and Governance management

• ESG best-in-class: highest ESG-rated companies by sector from parent index

• ESG thematic: focus on specific E / S / G issue

Impact

Target defined and measurable social or environmental outcomes

iShares MSCI Europe SRI UCITS ETF IESE 30 421

iShares MSCI EM SRI UCITS ETF SUSM 35 97

iShares MSCI USA SRI UCITS ETF SUAS 30 52

iShares MSCI Japan EUR-hedged SRI UCITS ETF (Acc) SUSJ 35 55

iShares MSCI Japan SRI UCITS ETF SUJP 30 13

iShares MSCI World SRI UCITS ETF SUSW 30 172

iShares Bloomberg MSCI Green Bonds index fund - 20 27

United Nations 17 Sustainable Development Goals exposure Research phase

Fund name Ticker TER(bps)

AUM($m)

iShares Global Water UCITS ETF IH2O 65 617

iShares Global Clean Energy UCITS ETF INRG 65 134

Inclusion & Diversity global exposure Development phase

2016 ETF.com award winner

iShares Euro Corp. Bond SRI 0-3yr UCITS ETF SUSE 25 614

iShares Euro Corp. Bond SRI UCITS ETF* SUOE 25 -

iShares $ Corp Bond SRI 0-3 yr UCITS ETF* SUSU 15 -

Source: iShares Global Business Intelligence, 31/10/2017. *Fund not launched yet


Model Portfolio Solution: Strategic EUR models with ESG exposures

Analysis at index level. Source: BlackRock, MPI, Morningstar. Time Period: 05/01//2012– 28/04/2017. Data Frequency: daily, Currency: EUR.

0%

2%

4%

6%

8%

10%

12%

14%

0% 2% 4% 6% 8% 10% 12%

Tota

l Ann

ualis

ed R

etur

n (%

)

Total Annualised Risk (%)

Conservative Mod Conservative Moderate Mod Aggressive Aggressive

Consv ESG Mod Consv ESG Mod ESG Mod Aggr ESG Aggr ESG

0,00%

0,10%

0,20%

0,30%

0,40%

0,50%

0,60%

0,70%

0,80%

0,90%

1,00%

Consv ESG Mod Consv ESG Mod ESG Mod Aggr ESG Aggr ESG

5 Year Risk/Return Scatter Graph

Total Annualised 5 Year Tracking Error


ESG best in class index methodology - graph

Source: MSCI, December 2016

MSCI index (equity)

Bloomberg-Barclays index (fixed income)

MSCI SRI index (equity)

Bloomberg Barclays MSCI SRI index (fixed income)

Military Weapons, Civilian Firearms, Nuclear Power

Alcohol, Tobacco, Genetically Modified Organisms

Adult entertainment, Gambling

Controversy score- below 4/10 (equities)

- below 1/10 (fixed income)

ESG rating- below A (equities)

- below BBB (fixed income)

1

2

3

13

Best ESG-rated companies in each sector


Top 5 holdings

Nestle HSBC Novartis British America Tobacco Shell

Roche Holding Total SAP Allianz Unilever

Source: BlackRock, Bloomberg, net TR EUR, from 28/09/2007-31/10/2017. ESG metrics as of 31/10/2017. Past performance is not a guide to current or future performance and should not be the sole factor of consideration when selecting a product. Index data are for illustrative purposes only and do not represent actual iShares Fund performance. Indexes are unmanaged and one cannot invest directly in an index. Performance returns do not reflect any management fees, transaction costs or expenses.

Top 5 exclusions from parent index

Cumulative performance (%)

Country weights (%)

Source: BlackRock, MSCI, as of 31/10/2017. Reference to the names of each company mentioned in this communications is merely for explaining the investment strategy, and should not be construed as investment advice or investment recommendation of those companies. Characteristics subject to change

Europe SRI : Controlling risk in an uncertain regulatory environmentMacro: Car-makers controversy, tobacco industry

Annualised return (%) Volatility(%)

Sharperatio

1 year 3 year 5 year Sinceinception

5 year 5 year

MSCI Europe SRI 19.03 9.91 11.96 4.87 11.30 1.06

MSCI Europe 19.52 8.05 10.48 3.13 11.34 0.92

Index comparison since inception ESG metrics

Stocks inaverage

TrackingError (%)

Beta ESG adjustedscore

Carbon Intensity(tCO2e/$m sales)

MSCI Europe SRI 114 2.85 0.97 8.8 150

MSCI Europe 445 - 1.00 6.9 183

14

Sector weights (%)


0%

5%

10%

15%

20%

25% MSCI Europe SRI MSCI Europe

0%

5%

10%

15%

20%

25% MSCI Europe SRI MSCI Europe

0

50

100

150

200

09/07 09/08 09/09 09/10 09/11 09/12 09/13 09/14 09/15 09/16 09/17

MSCI Europe SRIMSCI Europe

MKTG1117E-303081-902554

0%5%10%15%20%25%30%35% MSCI EM SRI MSCI EM

EM SRI : A proxy for broad EM ex-ChinaMacro: US sanctions against China

Source: BlackRock, Bloomberg, net USD TR, from 31/05/2011-31/10/2017. ESG metrics as of 31/10/2017. Past performance is not a guide to current or future performance and should not be the sole factor of consideration when selecting a product. Index data are for illustrative purposes only and do not represent actual iShares Fund performance. Indexes are unmanaged and one cannot invest directly in an index. Performance returns do not reflect any management fees, transaction costs or expenses.




Sharperatio

1 year 3 year 5 year Since inception

5 year 5 year

MSCI EM SRI 20.28 5.85 6.14 4.35 13.40 0.46

MSCI EM 26.45 5.70 4.83 1.81 14.46 0.33


Stocks inaverage

Trackingerror (%)



MSCI EM SRI 184 4.62 0.87 6.7 198

MSCI EM 838 - 1.00 4.3 352

15

Top 5 holdings

Tencent Samsung Alibaba Naspers China Construction Bank

Taiwan Semiconductor Housing Development Finance Banco Bradesco Infosys KB Financial Group



Sector weights (%)

0%5%

10%15%20%25%30% MSCI EM SRI MSCI EM

Country weights (%)

0

50

100

150

05/11 05/12 05/13 05/14 05/15 05/16 05/17

MSCI EM SRIMSCI EM

MKTG1117E-303081-902554


Sector weights (%)


MSCI USA SRI IndexMacro: Equifax, Google controversies



Sharperatio


5 year 5 year

MSCI USA SRI 24.63 9.56 14.16 7.00 9.84 1.44

MSCI USA 22.78 9.95 14.40 6.97 9.51 1.51


Stocks inaverage

Trackingerror (%)



MSCI USA SRI 160 3.12 0.96 7.2 135

MSCI USA 631 - 1.00 5.1 198

16

Top 5 holdings

Apple Amazon Facebook Johnson and Johnson JP Morgan Chase

Microsoft Procter and Gamble Intel Corporation Cisco System Walt Disney


Country weights (%)

n/a


0%

5%

10%

15%

20%

25%

30% MSCI USA SRI MSCI USA

0

50

100

150

200

250

09/07 09/08 09/09 09/10 09/11 09/12 09/13 09/14 09/15 09/16 09/17

MSCI USA SRIMSCI USA

MKTG1117E-303081-902554


Cumulative performance (%) Sector weights (%)


Japan SRI : Get exposure to local investors’ favourite stocks Macro: GPIF selection of MSCI ESG indices


Sharperatio


5 year 5 year

MSCI JapanSRI 14.38 10.27 12.68 2.68 12.83 0.99

MSCI Japan 17.80 9.86 12.03 2.13 12.46 0.97


Stocks inaverage

Trackingerror (%)



MSCI Japan SRI 59 3.26 1.03 7.9 78

MSCI Japan 321 - 1.00 5.4 126

17

Top 5 holdings

Toyota Motor Corp Mitsubishi UFJ Financial Group Softbank Group Keyence Corp Sumitomo Mitsui Group

Honda Motor Co Sony Corp KIDDI Panasonic Corp NTT Docomo


Country weights (%)

n/a


0%

5%

10%

15%

20%

25% MSCI Japan SRI MSCI Japan

0

50

100

150

09/07 09/08 09/09 09/10 09/11 09/12 09/13 09/14 09/15 09/16 09/17

MSCI Japan SRIMSCI Japan

MKTG1117E-303081-902554


Sector weights (%)


MSCI World SRI Index


Sharperatio


5 year 5 year

MSCI World SRI 23.49 8.41 11.71 4.83 9.90 1.18

MSCI World 22.77 8.13 11.56 4.37 9.85 1.17


Stocks inaverage

Trackingerror (%)



MSCI World SRI 399 1.82 0.98 7.9 139

MSCI World 1,652 - 1.00 5.7 200

18

Top 5 holdings

Apple Amazon Com Facebook Johnson & Johnson JP Morgan Chase

Microsoft Corp Procter & Gamble Co Intel Corp Roche Holding Walt Disney


Country weights (%)



0%

5%

10%

15%

20%

25% MSCI World SRI MSCI World

0%10%20%30%40%50%60%70% MSCI World SRI MSCI World

0

50

100

150

200

09/07 09/08 09/09 09/10 09/11 09/12 09/13 09/14 09/15 09/16 09/17

MSCI World SRIMSCI World

MKTG1117E-303081-902554

Top 5 issuers

ENEL SPA

PHILIP MORRIS INTERNATIONAL IN

AMERICA MOVIL SAB DE CV

COOPERATIVE RABOBANK UA (RABOBK)

INTESA (ISPIM) DAIMLER CHRYSLER (DAIGR) BMW AG (BMW) ING BANK (INTNED)

Source: Bloomberg Barclays, gross TR EUR, 30/04/2017 – 31/07/2017 . Past performance is not a guide to current or future performance and should not be the sole factor of consideration when selecting a product. Index data are for illustrative purposes only and do not represent actual iShares Fund performance. Indexes are unmanaged and one cannot invest directly in an index. Performance returns do not reflect any management fees, transaction costs or expenses.

Examples of exclusion


Source: MSCI ESG Research and Bloomberg index provider, as of 31/07/2017. Reference to the names of each company mentioned in this communications is merely for explaining the investment strategy, and should not be construed as investment advice or investment recommendation of those companies. Characteristics subject to change

Bloomberg-Barclays MSCI Euro Corporate 0-3 Sustainable SRI Index

PROFESSIONAL CLIENTS / QUALIFIED CLIENTS / QUALIFIED INVESTORS ONLY 19

Breakdown By Barclays Index Credit Rating

Bloomberg-Barclays MSCI Euro Corporate 0-3

Sustainable SRI Index

Bloomberg-Barclays Euro Corporate 0-3 Index

# Bonds 414 633

# Issuers 199 299

Market Value (€m) 345 533

Effective Duration (yr) 1.54 1.55

Yield to Worst (%) -0.03 -0.01

Index Rating A- A-

949698

100102104106108110112

apr-12 apr-13 apr-14 apr-15 apr-16 apr-17

43% 43%

4% 8%

53% 49%

0%

20%

40%

60%

80%

100%

BBG Barc MSCI Euro Corp 0-3Sustainable SRI Index

BBG Barc Euro Corp 0-3 Year Index

Industrial Utility Financial Institutions

0%

20%

40%

60%

Aaa Aa A BaaBBG Barc MSCI Euro Corp 0-3 Sustainable SRI IndexBBG Barc Euro Corp 0-3 Year Index

ESG metrics

ESG adjusted score Carbon Intensity (tCO2e/$m sales)

Bloomberg-Barclays MSCI Euro Corporate 0-3 Sustainable SRI Index

6.94 105.49

Bloomberg-Barclays Euro Corporate 0-3 Index

N/A N/A

MKTG1117E-303081-902554

Top 5 issuers

VOLKSWAGEN INTERNATIONAL FINANCE NV

JPMORGAN CHASE & CO

AT&T INC

BMW FINANCE NV CREDIT AGRICOLE SA TELEFONICA EMISIONES SAU GOLDMAN SACHS GROUP INC ORANGE SA





Bloomberg-Barclays MSCI Euro Corporate Sustainable SRI Index



Bloomberg-Barclays MSCI Euro Corporate Sustainable

SRI Index

Bloomberg-Barclays Euro Corporate Index

# Bonds 1,363 2,112

# Issuers 315 516

Market Value (€m) 1,142 1,789


Yield to Worst (%) 0.75 0.79

Index Rating A3/BAA1 A3/BAA1

90

100

110

120

130

140

apr-10 apr-11 apr-12 apr-13 apr-14 apr-15 apr-16 apr-17

49% 52%

5% 7%

46% 41%

0%10%20%30%40%50%60%70%80%90%

100%

BBG Barc MSCI Euro Corporate SustainableSRI Index

BBG Barc Euro Corporate Index


0%

20%

40%

60%

Aaa Aa A Baa

BBG Barc MSCI Euro Corporate Sustainable SRI Index BBG Barc Euro Corporate Index

ESG metrics


Bloomberg-Barclays MSCI Euro Corporate Sustainable SRI Index

7.00 114.63

Bloomberg-Barclays Euro Corporate Index

6.1 140.35

MKTG1117E-303081-902554

Top 5 issuers

BANK OF AMERICA CORP

JPMORGAN CHASE & CO

CITIGROUP INC

MORGAN STANLEY GOLDMAN SACHS GROUP INC WESTPAC BANKING CORP PNC BANK NATIONAL ASSOCIATION APPLE INC





Bloomberg-Barclays MSCI USD Corp 0-3 SRI Index



Bloomberg Barclays MSCI USD Corp 0-3 SRI Index

Bloomberg Barclays USD Corp 0-3 Index

# Bonds 744 1,518

# Issuers 227 449

Market Value (€m) 654 1,380


Yield to Worst (%) 1.80 1.82

Index Rating A2/A3 A2/A3

49% 52%

2% 5%

49% 43%

0%

20%

40%

60%

80%

100%

Bloomberg Barclays MSCI USD Corp 0-3SRI Index

Bloomberg Barclays USD Corp 0-3 Index


0

20

40

60

Aaa Aa A Baa

Bloomberg Barclays MSCI USD Corp 0-3 SRI IndexBloomberg Barclays USD Corp 0-3 Index

9698

100102104106108110

ago-12 ago-13 ago-14 ago-15 ago-16

ESG metrics


Bloomberg-Barclays MSCI USD Corp 0-3 SRI Index

6.44 96.29

Bloomberg-Barclays USD Corp 0-3 Index

4.95 180.43

MKTG1117E-303081-902554

Inclusion & Diversity

MKTG1117E-303081-902554

Investing in Inclusion & Diversity

Source: Thomson Reuters as of 30/06/2017


Why Inclusion and Diversity (I&D)?

1. Innovate to drive growth: companies that are built on the pillars of diversity, inclusion and people development have the potential to foster innovative environments that lead to long term growth

2. Make a difference: invest in and support the companies that adhere to the highest global standard of inclusion and diversity

3. Diversify a global portfolio: with an index containing ~100 equally weighted securities, exposure to these companies could diversify a global equity allocation

How can investors incorporate I&D into a portfolio?

Given the global coverage and long-term nature of the trends underpinning I&D, investors may consider using it as a satellite component or strategic tilt within a global portfolio.

What makes a company inclusive and diverse?

Inclusion Diversity People Development Controversy

The four pillars that determine a company’s I&D score

MKTG1117E-303081-902554

Thomson Reuters Global Large/Mid Diversity & Inclusion Custom Equal Weight Total Return Net Index


Parent index: Thomson Reuters Global ex Frontier Large/Mid Cap

index

Calculate I&D scores for companies in parent index

Select the top 100

Equalweight

Source: Thomson Reuters from 30/06/2009 to 30/06/2017

90

110

130

150

170

190

210

230

Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17

Thomson Reuters Global Large/Mid Diversity & Inclusion Custom Equal Weight IndexThomson Reuters Global ex Frontier Large/Mid Cap index

Historical performance of the Thomson Reuters Global Large/Mid Diversity & Inclusion Custom Equal Weight Total Return Net Index compared to the parent index

Methodology

24MKTG1117E-303081-902554

Green Bonds

MKTG1117E-303081-902554

The aim of Green Bonds is to establish a transparent and prudent way of increasing investments in climate-related projects, or “Green Projects”

What’s green? The GBP recognizes 9 broad categories for Green Projects

Source: Green Bond Principles, June 2016Solutions are proposed solutions by the World Bank, Toyota, Bank of America and OntarioThe mention of Green Bonds does not refer to a specific BlackRock product. Projects listed are for illustrative purposes only and not necessarily held in any BlackRock accounts This is not a recommendation to invest in any particular financial product. No analysis of their suitability was conducted and no statement of opinion in relation to their suitability is provided

Renewable Energy

Energy Efficiency

Pollution Prevention and Control

Sustainable Management of Living Natural Resources

Terrestrial and Aquatic Biodiversity Conservation

Clean Transportation

Sustainable Water Management

Climate Change Adaptation

Eco-efficient Products, Production Technologies and Processes

Bank of America – Antioch Unified School Solar Issue: Rising threat of global warming poses the need

for low carbon energy Solution: Facilitate the construction of renewable low

carbon energy

World Bank — Eco-Farming Project: China Issue: Many households rely on agriculture for their

livelihood leading to land abuse / over-fertilization Solution: Promote eco-friendly farming practices;

reduce the burning of coal / firewood

Sample Green Bond IssuancesToyota – Green Auto Loans Issue: Transportation sector accounts for 27% of US

greenhouse gas emissions Solution: Auto loans for electric vehicle and hybrid

car production to reduce CO2 emissions

Ontario – Clean Transportation Issue: Low carbon transportation infrastructure is

needed. Example: Eglinton Crosstown LRT project Solution: Bring 19km of new public rapid transit

to urban area of Toronto with near zero emissions


Bloomberg Barclays MSCI Green Bond Index vs flagship Fixed Income indices

Index Bloomberg Barclays Global Aggregate

Bloomberg Barclays Global Corporate

Bloomberg Barclays MSCI Green Bond

Description Multi currency, investment grade universe of treasury, government related, corporate and securitised

bonds

Multi currency, investment grade universe of corporate bonds

Multi currency, investment grade universe of Green Bonds

Number of bonds 20,122 13,283 160

Market value (USD, bn) 47,865 10,667 109

Duration 6.92 6.11 6.60

Yield 1.52 3.01 1.38

Option adjusted spread 42 155 65

Average credit rating AA2/AA3 BAA1/BAA2 AA3/AA-

Average ESG quality (MSCI) A/BBB A/BBB AA/A

Top 5 issuers (by ticker, market value %)

Japanese Govt. Bonds (15.9%)US Govt. Bonds (15.1%)Fannie Mae FMA (5.3%)

French Govt. Bonds (3.4%)Freddie Mac FHLMC (3.4%)

JP Morgan (1.4%)Goldman Sachs (1.3%)Bank of America (1.3%)

AT&T(1.2%)Verizon Communications (1.1%%)

European Investment Bank(12.95%)

KfW (10.36%)Republic of France (7.28%)

Iberdrola SA (3.16%)The Southern Company (2.89%)

Source: BlackRock, Bloomberg Barclays MSCI, as of May 31, 2017it is not possible to invest directly in an index. Reference to the names of each company mentioned in this communications is merely for explaining the investment strategy, and should not be construed as investment advice or investment recommendation of those companies..


Bloomberg Barclays MSCI Green Bond Index vs flagship Fixed Income indices

Index Bloomberg Barclays Global Aggregate

Bloomberg Barclays Global Corporate

Bloomberg Barclays MSCI Green Bond

Description Multi currency, investment grade universe of treasury, government related, corporate and securitised

bonds

Multi currency, investment grade universe of corporate bonds

Multi currency, investment grade universe of Green Bonds

Rating breakdown (%)

Currency breakdown (%)

Source: BlackRock, Barclays MSCI, as of 31 May 2017It is not possible to invest directly in an index.

Sector breakdown (%)

Treasury 54 - 7

Government Related 12 - 61

Corporate 18 100 31

Industrial 10 55 4

Utility 1 8 13

Financial 7 37 14

Securitised 16 - 1



Environmental impact per $100 million invested in GREENBIE (as of April 30, 2017)

29

152,658 tCO2of avoided

emissions/year

94,918 MWhof renewable energy

generated/year

417,537 MWhof energy

savings/year

1,665 hectares of land area

re/afforested or preserved

6,838 million liters of water saved/year

14,613 m3

of water or waste collected and disposed or

treated/year

22,145 households with new or improved water access and/or sanitary connections

PRELIMINARY results; source: BlackRock analysis on publicly available environmental impact reports as communicated by issuers; not every issuer reports on every metric, hence no linear extrapolation should be performed; BlackRock cannot be held responsible for inaccuracies in issuers’ reporting; methodology available upon request.

Source: BlackRock & publicly available information as at 31 May 2017, Reference to the names of each company mentioned in this communications is merely for explaining the investment strategy, and should not be construed as investment advice or investment recommendation of those companies.

BlackRock Green Bond Index Fund portfolio characteristics

Number of issuers in portfolio 78

Total amount of outstanding green bonds of issuers included in portfolio (USD)

$ 136,161,816,651

% of issuers in portfolio who reported on environmental impact

57%

% of assets in portfolio with environmental reporting

72%

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BlackRock ESG Data Integration

MKTG1117E-303081-902554

Source: MSCI, as of end of February rebalance. For illustrative purposes only.

Exclusionary screens on sub-industries

31

Weight of companies excluded from MSCI World

2.01%

1.16%

4.13%

0%

0.42%

1.5%

11.71%TOTAL

Alcohol

Tobacco

Gambling

Weapons

GMOs

Adult entertainment

Exclusions Example


ESG-controversy scores: 0 to 10 or flags

Source: MSCI ESG Reseach, December 2016. For illustrative purposes only. Reference to the names of each company mentioned in this communications is merely for explaining the investment strategy, and should not be construed as investment advice or investment recommendation of those companies


Aladdin enables reporting and analytics on portfolio ESG and carbon metricsES

GC

arbo

n

*Underlying stock metrics sourced from MSCI ESG research.

0%

2%

7%

2%

4% 5%

2%1%

0%

2%

4%

6%

8%

10%

AAA AA A BBB BB B CCC None

Active Risk Contribution by ESG Rating

Fund Benchmark Active

ESG Adjusted Score0 (worst) - 10 (best) 7.5 5.3 2.2

Environment Score0 (worst) - 10 (best) 7.0 6.0 1.0

Social Pillar Score0 (worst) - 10 (best) 5.7 4.7 1.0

Governance Score0 (worst) - 10 (best) 4.2 3.8 0.4

Fund: XXXBenchmark: XXX

Prepared For: XXXAs of Date: XXX

Fund Benchmark Active

Emissions Financed FY’14(metric tonnes / $ million total capital) 85.3 121.2 -35.9

Emissions Intensity FY’14(metric tonnes / $ million total sales) 76.8 136.8 -60.0

17

263123

13

375

28 67 34 63 58

539

1.285

769

32 8924 47 6

86 53

0

200

400

600

800

1000

1200

1400Emissions Financed FY’14 by Sector

Fund

Benchmark

9,48,3

7,4 7,17,7 7,3 7,1

8,67,5

6,97,8

4,6

6,06,8

4,45,3 5,5

4,45,6 5,1

0

2

4

6

8

10

ESG Adjusted Score by Sector Fund

Benchmark

15%

47%

33%

4%0% 0% 0% 2%4%

12%

22%

31%

21%

8%1% 1%

0%

10%

20%

30%

40%

50%

AAA AA A BBB BB B CCC None

ESG Ratings by Market Value


Investment Stewardship

MKTG1117E-303081-902554

BlackRock Investment Stewardship - global team with local presence

San Francisco

(4)

London (8)

Tokyo(5)

New York(10)

• 10 languages• 15 professional certifications and

21 academic degrees• Affiliations in 31 organizations• More than 225 years collective

experience in investment stewardship

6Offices

31Team

Members

94Voting

Markets

Leveraging the global expertise of our

Portfolio Managers

Researchers SpecialistsSingapore

(1)

Hong Kong

(3)


USEMEAAPAC

27%27%45%

USEMEAAPAC

34%36%30%

USEMEAAPAC

31%19%50%

We engage with companies for four main reasons:

36

2017 Engagement: How we Use Our Voice

We are preparing to vote at the company’s shareholder meeting and need to clarify the information in company disclosures

There has been an event at the company that has impacted its performance or may impact long-term company value

The company is in a sector or market where there is a thematic governance issue material to shareholder value

123

We have identified the company as lagging its peers on environmental, social or governance matters that could impact economic value

4

*July 1, 2016 to June 30, 2017

Voting and engagement statistics*

Proposals

163,499Engagements

1,274Meetings

17,316


Investment Stewardship engagement priorities for 2017-2018*

37

*Reporting cycle from July 2017 to July 2018.

GovernanceCorporate

strategy for the long term

Compensation that promotes long-termism

Disclosure of climate risks

Human capital management

Board composition, effectiveness, diversity, and accountability remain a top priority

Board review of corporate strategy is key in light of shifting assumptions

Executive pay policies should link closely to long-term strategy and goals

Consistent disclosure of standards would enhance understanding of the impact of climate change on individual companies, sectors and investment strategies

In a talent constrained environment, human capital management is a competitive advantage


38

Principles in Action


In 2017, Investment Stewardship will publish on a very limited basis statements on our analysis, engagements and votes in relation to certain high profile proposals at company shareholder meetings. Although we currently explain many of these votes inour quarterly reports, the explanation is usually anonymized and high level. Given the interest in certain votes, we decided it was more effective to explain our approach and decision publicly on the day of the meeting, or shortly thereafter, so interested clients and others can be aware of BlackRock’s vote when it is of most relevance to them. The below vote bulletins are available on theInvestment Stewardships team’s website: www.blackrock.com/stewardship

• Mylan

• Exxon Mobil

• Royal Dutch Shell

• Chevron

• Occidental Petroleum

• Santos

Company: ExxonMobil Corporation, United States

Meeting Date: May 31, 2017

Proposal: Item 12: Report on Impacts of Climate Change Policies

Board Recommendation: AGAINST

BlackRock Vote: FOR

Company: Mylan N.V., Netherlands

Meeting Date: June 22, 2017

Proposals: Item 1: Appointment of DirectorsItem 5: Advisory Vote on Executive Compensation

Board Recommendations: FOR

BlackRock’s Votes:AGAINST Appointment of 4 out of 11 Directors AGAINST Advisory Vote on Executive Compensation

MKTG1117E-303081-902554

Investment Stewardship resources

39

Work InsightsQuarterly Investment Stewardship Reports

• Quarterly summary by region of our team’s work• Quarterly voting and engagement statistics report

Engagement priorities for 2017-2018

Proxy Voting Guidelines and History • Regional Proxy Voting guidelines• Our approach to executive compensation• Proxy voting FAQ

Papers and Research• Leveling the Playing Field in Sustainability Risk• Key Considerations in the Debate on Differentiated Voting Rights• Australia's Gender Policies • Gender Diversity Among Hong Kong Boards

21st Century Engagement Guide• A practitioner guide on engagement practices

Statements on Stewardship

All reports and resources can be found at: www.blackrock.com/stewardship


Regulatory InformationBlackRock Advisors (UK) Limited, which is authorised and regulated by the Financial Conduct Authority ('FCA'), having its registered office at 12 Throgmorton Avenue, London, EC2N 2DL, England, Tel +44 (0)20 7743 3000, has issued this document for access by Professional Clients only and no other person should rely upon the information contained within it. For your protection, calls are usually recorded. iShares plc, iShares II plc, iShares III plc, iShares IV plc, iShares V plc, iShares VI plc and iShares VII plc (together 'the Companies') are open-ended investment companies with variable capital having segregated liability between their funds organised under the laws of Ireland and authorised by the Central Bank of Ireland.

For investors in AustriaThe funds mentioned in this document are registered for public offer in Austria. The Sales Prospectuses for the Companies, Key Investor Information Document and other documents as well as the annual and semi-annual reports have been published in Austria and are available free of charge from UniCredit Bank AG Vienna Branch, Julius Tandler Platz 3, 1090 Vienna, Austria, the Austrian paying and information agent and are also available on the website www.ishares.at. Any decision to invest must be based solely on the information contained in the Company’s Prospectus, Key Investor Information Document and the latest half-yearly report and unaudited accounts and/or annual report and audited accounts. Investors should read the fund specific risks in the Key Investor Information Document and the Company’s Prospectus. The Companies intend to fulfil the requirements for treatment of all of their sub-funds as reporting funds. Therefore the Companies have an Austrian tax representative who calculates the Austrian Deemed Distributed Income figures once a year and files an electronic tax return with the Austrian Control Bank. However, it cannot be guaranteed that the requirements will be met in the future. The Companies reserve the right to give up the reporting fund status and to not undertake such tax filings.

For investors in BelgiumSome of the funds mentioned in this document are not registered for public distribution in Belgium. Unless indicated otherwise, any decision to invest must be based solely on the information contained in the Company’s Prospectus, Key Investor Information Document and the latest half-yearly report and unaudited accounts and/or annual report and audited accounts copies of which can be obtained free of charge from www.ishares.com. Investors should read the fund specific risks in the Key Investor Information Document and the Company’s Prospectus.

For investors in DenmarkThis document is directed at Professional Investors in Denmark only and the Funds are authorised by Finanstilsynet, the Danish Financial Supervisory Authority. Any decision to invest must be based solely on the information contained in the Company’s Prospectus, Key Investor Information Document and the latest half-yearly report and unaudited accounts and/or annual report and audited accounts and the Danish country supplements. Investors should read the fund specific risks in the Key Investor Information Document and the Company’s Prospectus. Copies of all documentation can be obtained free of charge from offices of the paying agent in Denmark BlackRock Copenhagen Branch, filial af BlackRock Investment Management (UK) Limited Harbour House, Sundkrogsgade 21, 2100 København Ø, Denmark. This document is strictly confidential and may not be distributed without authorisation from BlackRock Advisors (UK) Limited.

For investors in FinlandThe funds mentioned are registered for public distribution in Finland and are authorised by the Finanssivalvonta (Fiva), the Financial Supervisory Authority (FIN-FSA), in Finland. Any decision to invest must be based solely on the information contained in the Company’s Prospectus, Key Investor Information Document and the latest half-yearly report and unaudited accounts and/or annual report and audited accounts. Investors should read the fund specific risks in the Key Investor Information Document and the Company’s Prospectus. This document is strictly confidential and may not be distributed without authorisation from BlackRock Advisors (UK) Limited.

For investors in FranceAny subscription for shares in a sub-fund of one of the companies will be carried out according to the conditions specified in the full Prospectus, Key Investor Information Document, the French Addendum and in the Supplements of Companies as the case may be. These documents can be obtained by contacting the paying agent of the Company: BNP Paribas Securities Services, 3 rue d'Antin, 75002 Paris, tel: 00 33 1 42 98 10 00 or by visiting the French part of the site www.iShares.eu. The companies are undertakings for collective investment in transferable securities (UCITS) governed by foreign laws and approved by the Financial Regulator in the home state as a UCITS complying with European regulations. The European Directive 2009/65/EC of July 13, 2009 on UCITS, as amended, establishes common rules in order to allow the cross-border marketing of UCITS which comply with it. This common foundation did not prohibit different methods of implementation. This is why a European UCITS may be marketed in France even though the activity of such scheme would not respect rules identical to those which govern the approval of this type of product in France. This sub fund has been authorized for marketing in France by the Autorité des Marchés Financiers. Please note that the distribution of shares of some sub funds of funds is not allowed in France. This document does not constitute an offer or a solicitation in relation to the shares of the funds.

Disclaimers


For investors in GermanyThe Sales Prospectus and Key Investor Information Document, as well as the annual and semi-annual reports are available free of charge from Commerzbank Kaiserplatz, 60311 Frankfurt am Main, Germany. The Companies intend to fulfil the prerequisites for treatment of their sub-funds as so-called "transparent funds" pursuant to §§ 2 and 4 of the German Investment Tax Act (Investmentsteuergesetz – InvStG). However, it cannot be guaranteed that the requirements will be met. The Companies reserve the right to give up the "transparent status" and to not undertake the necessary publications. Any decision to invest must be based solely on the information contained in the Company’s Prospectus, Key Investor Information Document and the latest half-yearly report and unaudited accounts and/or annual report and audited accounts. Investors should read the fund specific risks in the Key Investor Information Document and the Company’s Prospectus. Please note that important information about iShares VII funds is available in the current prospectus and other documents that can be obtained free of charge from the paying agent, Deutsche Bank AG Taunusanlage 12, 60325 Frankfurt am Main, Federal Republic of Germany.

For investors in IcelandThe funds mentioned in this document are not registered for public distribution in Iceland. The investment described in this memorandum is not a public offering of securities. It is not registered for public distribution in Iceland with the Financial Supervisory Authority pursuant to the Icelandic Act on Undertakings for Collective Investment in Transferable Securities (UCITS) and investment Funds No. 30/2003 and supplementary regulations. The investment may not be offered or sold by means of this memorandum or anyway later resold otherwise than in accordance with Article 13 of the Regulation on UCITS and Investment Funds No. 792/2003. This document is intended for information purposes only and does not constitute investment advice or an offer to sell or a solicitation of an offer to buy the funds described within and no steps may be taken which would constitute or result in a public offering of the funds in Iceland. This document is strictly confidential and may not be distributed without authorisation from BlackRock Advisors (UK) Limited.

Please read the prospectus and ensure that you are eligible to invest under the local regulatory and financial rules, and comply with restrictions on foreign currency investments, that exist for Icelandic investors. We recommend that you seek independent financial advice before making any investment decision. This document is for your information only. Accordingly, this document and relevant information may not be used for any other purpose or passed on to any other person in Iceland. The funds described in this document are not registered for public distribution in Iceland and may not be offered, sold or resold to the public in Iceland. Any decision to invest must be based solely on the information contained in the Company’s Prospectus, Key Investor Information Document and the latest half-yearly report and unaudited accounts and/or annual report and audited accounts. Investors should read the fund specific risks in the Key Investor Information Document and the Company’s Prospectus.

For investors in IrelandThis document is strictly confidential and may not be distributed without authorisation from BlackRock Advisors (UK) Limited. With respect to funds that are registered for public offer in Ireland, important information on the Companies is contained in the relevant Prospectus, Key Investor Information Document and other documents, copies of which can be obtained by calling 0845 357 7000, from your broker or financial adviser, by writing to BlackRock Advisors (UK) Limited, iShares Business Development, 12 Throgmorton Avenue, London, EC2N 2DL or by writing to the Manager of the Companies: BlackRock Asset Management Ireland Limited, JP Morgan House, IFSC, Dublin 1, Ireland. Investors should read the fund specific risks in the Key Investor Information Document and the Company’s Prospectus.

For investors in IsraelBlackRock Investment Management (UK) Limited is not licensed under Israel's Regulation of Investment Advice, Investment Marketing and Portfolio Management Law, 5755-1995 (the “Advice Law”). No action has been taken or will be taken in Israel that would permit a public offering or distribution of the products mentioned in this document to the public in Israel. The products mentioned in this document have not been approved by the Israel Securities Authority. In addition, the products mentioned in this document are not regulated under the provisions of Israel’s Joint Investment Trusts Law, 5754-1994 (the “Joint Investment Trusts Law”). This document has not been approved by the Israel Securities Authority and will only be distributed to Israeli residents in a manner that will not constitute "an offer to the public" under sections 15 and 15a of the Israel Securities Law, 5728-1968 (the "Securities Law") or section 25 of the Joint Investment Trusts Law, as applicable.

This document and the products mentioned herein are being offered to those categories of investors listed in the First Addendum (the “Addendum") to the Securities Law, ("Institutional Investors"); in all cases under circumstances that will fall within the private placement or other exemptions of the Joint Investment Trusts Law, the Securities Law and any applicable guidelines, pronouncements or rulings issued from time to time by the Israel Securities Authority. This document may not be reproduced or used for any other purpose, nor be furnished to any other person other than those to whom copies have been sent. Nothing in this document should be considered investment advice or investment marketing as defined in the Regulation of Investment Advice, Investment Marketing and Portfolio Management Law, 5755-1995. This document does not constitute an offer to sell or solicitation of an offer to buy any securities, nor does it constitute an offer to sell to or solicitation of an offer to buy from any person or persons in any state or other jurisdiction in which such offer or solicitation would be unlawful, or in which the person making such offer or solicitation is not qualified to do so, or to a person or persons to whom it is unlawful to make such offer or solicitation.

Disclaimers


For investors in ItalyAny application for shares in the funds is on the terms of the Prospectus, Key Investor Information Document, for the Companies. The Shares of certain sub-funds in the Companies have been admitted to listing in Italy and are currently listed on the Mercato Telematico Fondi of Borsa Italiana S.p.A. The list of the sub-funds listed in Italy, the Prospectus, of the Companies, the Documento di quotazione of the iShares funds, the latest annual and semi annual report of the Companies are published (i) on the Companies' internet website at the address www.iShares.com and (ii) on Borsa Italiana S.p.A's website at the address www.borsaitalia.it. These documents are available for the public in Italian version with certification that such documents are a faithful translation of the original documents. Investors are entitled to receive free of charge, even at home, a copy of the above documents, upon written request forwarded to the Companies. Investors should read the fund specific risks in the Key Investor Information Document and the Company’s Prospectus. For comprehensive information on the expenses charged to a fund and fees applicable to investors, see the Documento di quotazione and the Prospectus.

For investors in LuxembourgThe Companies have been notified to the Commission de Surveillance du Secteur Financier in Luxembourg in order to market their shares for sale to the public in Luxembourg and the Companies are notified Undertaking in Collective Investment for Transferable Securities (UCITS). The Companies have not been listed on the Luxembourg Stock Exchange, investors should contact their broker for further information. Investment is subject to the Prospectus, Key Investor Information Document and all documents (the main/umbrella Prospectus, the Supplement[s], the latest and any previous annual and semi-annual reports of the Companies and the Memorandum and Articles of Association of the Companies) will be available in the Luxembourg, free of charge, from the offices of the Local Agent, BNP Paribas Securities Services, Luxembourg Branch 33, rue de Gasperich Howald – Hesperange L-2085 Luxembourg or by visiting the website on www.iShares.com. Investors should read the fund specific risks in the Key Investor Information Document and the Company’s Prospectus.

For investors in NorwayThe funds mentioned are registered for public distribution in Norway and are authorised by Kredittilsynet, the Financial Supervisory Authority of Norway. Any application for shares in the funds is on the terms of the Prospectus, Key Investor Information Document for the Companies. Any decision to invest must be based solely on the information contained in the Company’s Prospectus, Key Investor Information Document and the latest half-yearly report and unaudited accounts and/or annual report and audited accounts. Investors should read the fund specific risks in the Key Investor Information Document and the Company’s Prospectus. This document is strictly confidential and may not be distributed without authorisation from BlackRock Advisors (UK) Limited.

For investors in SpainThe funds mentioned are registered for public distribution in Spain.The sales Prospectus has been registered with the Spanish Securities Market Commission (Comisión Nacional del Mercado de Valores ('CNMV')). The funds which are registered in the official registry of the Spanish Securities and Exchange Commission (CNMV) are iShares plc (registration number 801), iShares II plc (registration number 802) and iShares III plc (registration number 806), iShares IV plc (registration number 1402), iShares V plc (registration number 977), iShares VI plc (registration number 1091), iShares VII plc (registration number 886) and iShares (Lux) (registration number 905). The official registry, CNMV, must always be checked to see which sub funds of the funds mentioned are registered for public distribution in Spain. Any decision to invest must be based solely on the information contained in the Company’s Prospectus, Key Investor Information Document and the latest half-yearly report and unaudited accounts and/or annual report and audited accounts, copies of which can be obtained free of charge at www.iShares.es. Investors should read the fund specific risks in the Key Investor Information Document and the Company’s Prospectus. This document contains products or services of BlackRock, Inc. (or affiliates thereof) that might be offered directly or indirectly within the Andorran jurisdiction, and it should not be regarded as solicitation of business in any jurisdiction including the Principality of Andorra.

For investors in SwedenThe Funds mentioned herein are registered for public distribution in Sweden and are authorised by Finansinspektionen, the Swedish Financial Supervisory Authority. Any application for shares in the funds is on the terms of the Prospectus, Key Investor Information Document, for the Companies. Important information relating to the Companies is contained in the relevant Prospectus, Key Investor Information Document and other documents, copies of which can be obtained free of charge from offices of the paying agent BlackRock Investment Management (UK) Limited, Stockholm Filial Norrlandsgatan 16, 1 floor, S-111 43 Stockholm, Sweden. Any decision to invest must be based solely on the information contained in the Company’s Prospectus, Key Investor Information Document and the latest half-yearly report and unaudited accounts and/or annual report and audited accounts. Investors should read the fund specific risks in the Key Investor Information Document and the Company’s Prospectus. Please note that important information about iShares V funds is available in the current prospectus and other documents that can be obtained free of charge from the paying agent BlackRock Investment Management (UK) Limited, Stockholm Filial Norrlandsgatan 16, 1 floor, S-111 43 Stockholm, Sweden.

Disclaimers


For investors in Switzerland[PLEASE CONTACT COMPLIANCE FOR CORRECT DISCLAIMER]

For investors in the NetherlandsThe Companies have been notified to the Authority Financial Markets in line with the registration process set out in the Dutch Financial Markets Supervision Act (Wet op het financieeltoezicht; "FMSA"), regulations enacted pursuant thereto and the supervision thereunder of the Authority Financial Markets. Copies of all documents (the main/umbrella Prospectus, Key Investor Information Document, the Supplement[s], the latest and any previous annual and semi-annual reports of the Companies and the Memorandum and Articles of Association of the Companies) will be available in the Netherlands, free of charge, from the offices of the representative in the Netherlands, BlackRock Investment Management (UK) Limited, Rembrandt Toren, 17th floor, Amstelplein 1, 1096 HA Amsterdam, Netherlands or by calling the Dutch representative’s information request line on 0800 0233 466 and the iShares website www.ishares.nl. Any decision to invest should be based on the information contained in the Prospectus and the key investor Information Document and the latest half-yearly report and unaudited accounts and/or annual report and audited accounts. Investors should read the fund specific risks in the Key Investor Information Document and the Company’s Prospectus.

For investors in the UKMost of the protections provided by the UK regulatory system do not apply to the operation of the Companies, and compensation will not be available under the UK Financial Services Compensation Scheme on its default. The Companies are recognised schemes for the purposes of the Financial Services and Markets Act 2000. Any decision to invest must be based solely on the information contained in the Company’s Prospectus, Key Investor Information Document and the latest half-yearly report and unaudited accounts and/or annual report and audited accounts. Investors should read the fund specific risks in the Key Investor Information Document and the Company’s Prospectus.

Restricted InvestorsThis document is not, and under no circumstances is to be construed as an advertisement or any other step in furtherance of a public offering of shares in the United States or Canada. This document is not aimed at persons who are resident in the United States, Canada or any province or territory thereof, where the companies/securities are not authorised or registered for distribution and where no prospectus has been filed with any securities commission or regulatory authority. The companies/securities may not be acquired or owned by, or acquired with the assets of, an ERISA Plan.

Risk WarningsInvestment in the products mentioned in this document may not be suitable for all investors. Past performance is not a guide to current or future performance and should not be the sole factor of consideration when selecting a product. The price of the investments may go up or down and the investor may not get back the amount invested. Your income is not fixed and may fluctuate. The value of investments involving exposure to foreign currencies can be affected by exchange rate movements. We remind you that the levels and bases of, and reliefs from, taxation can change.

BlackRock has not considered the suitability of this investment against your individual needs and risk tolerance. The data displayed provides summary information. Investment should be made on the basis of the relevant Prospectus which is available from the manager.

In respect of the products mentioned this document is intended for information purposes only and does not constitute investment advice or an offer to sell or a solicitation of an offer to buy the securities described within. This document may not be distributed without authorisation from BlackRock Advisors (UK) Limited.

Index DisclaimersThe funds or securities referred to herein are not sponsored, endorsed, or promoted by MSCI ESG Research, Bloomberg, or Barclays, and MSCI ESG Research, Bloomberg and Barclays bear no liability with respect to any such funds or securities or any index on which such funds or securities are based. The Prospectus contains a more detailed description of the limited relationship MSCI ESG Research, Bloomberg, and Barclays have with BlackRock and any related funds.

Disclaimers


The “Dow Jones Sustainability World Enlarged Index ex Alcohol, Tobacco, Gambling, Armaments, Firearms and Adult Entertainment SM and Dow Jones Sustainability Europe Enlarged Index ex Alcohol, Tobacco, Gambling, Armaments, Firearms and Adult Entertainment SM" is a joint product of Dow Jones Indexes, the marketing name and a licensed trademark of CME Group Index Services LLC ("CME Indexes"), and SAM Indexes GmbH (“SAM”), and has been licensed for use. "Dow Jones®", "[DJSI Index]SM" and "Dow Jones Indexes" are service marks of Dow Jones Trademark Holdings, LLC ("Dow Jones") and have been licensed to CME Indexes and sublicensed for use for certain purposes by BlackRock. Dow Jones, CME Indexes, SAM and their respective affiliates have no relationship to [licensee], other than making of the “Dow Jones Sustainability World Enlarged Index ex Alcohol, Tobacco, Gambling, Armaments, Firearms and Adult Entertainment SM and Dow Jones Sustainability Europe Enlarged Index ex Alcohol, Tobacco, Gambling, Armaments, Firearms and Adult Entertainment SM"(the "Index") and their respective service marks available for use in connection with the iShares.

iShares funds are not sponsored, endorsed, or promoted by MSCI, and MSCI bears no liability with respect to any such funds or any index on which such funds are based. The Prospectus contains a more detailed description of the limited relationship that MSCI has with BlackRock and any related funds.

The Index is a product of S&P Dow Jones Indices LLC ("SPDJI"), and has been licensed for use by BlackRock Fund Advisors or its affiliates. 'Standard & Poor’s®' and 'S&P®' are registered trademarks of Standard & Poor's Financial Services LLC ("S&P"); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC ("Dow Jones"); 'S&P Global Clean Energy' and 'S&P Global Water' are trademarks of the SPDJI; and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by BlackRock Fund Advisors or its affiliates. The iShares ETFs are not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates and none of such parties make any representation regarding the advisability of investing in such product(s).

Fund DisclaimersCredit Risk: The issuer of a financial asset held within the Fund may not pay income or repay capital to the Fund when due. If a financial institution is unable to meet its financial obligations, its financial assets may be subject to a write down in value or converted (i.e. “bail-in”) by relevant authorities to rescue the institution.

Investment risk is concentrated in specific sectors, countries, currencies or companies. This means the Fund is more sensitive to any localised economic, market, political or regulatory events.

Counterparty Risk: The insolvency of any institutions providing services such as safekeeping of assets or acting as counterparty to derivatives or other instruments, may expose the Share Class to financial loss.

Credit risk, changes to interest rates and/or issuer defaults will have a significant impact on the performance of fixed income securities. Potential or actual credit rating downgrades may increase the level of risk.

Credit Risk: The issuer of a financial asset held within the Fund may not pay income or repay capital to the Fund when due.

Currency Risk: The Fund invests in other currencies. Changes in exchange rates will therefore affect the value of the investment.

Derivatives are highly sensitive to changes in the value of the asset on which they are based and can increase the size of losses and gains, resulting in greater fluctuations in the value of the Fund. The impact to the Fund can be greater where derivatives are used in an extensive or complex way.

Emerging markets are generally more sensitive to economic and political conditions than developed markets. Other factors include greater 'Liquidity Risk', restrictions on investment or transfer of assets and failed/delayed delivery of securities or payments to the Fund.

The value of equities and equity-related securities can be affected by daily stock market movements. Other influential factors include political, economic news, company earnings and significant corporate events.

The value of equities and equity-related securities can be affected by daily stock market movements, political factors, economic news, company earnings and significant corporate events.

Disclaimers


The benchmark index’s ESG rating assessment of an issuer’s performance is intended to be relative to the standards of the issuer’s industry peers. No exclusion (apart from controversial weapons) is made on the basis of how ethical a particular industry/sector is perceived to be. Investors should therefore make a personal ethical assessment of the Index prior to investing in the Fund.

The benchmark index only excludes companies engaging in certain activities inconsistent with ESG criteria if such activities exceed the thresholds determined by the index provider. Investors should therefore make a personal ethical assessment of the benchmark index’s ESG screening prior to investing in the Fund. Such ESG screening may adversely affect the value of the Fund’s investments compared to a fund without such screening.

The benchmark index’s ESG rating assessment of an issuer’s performance is intended to be relative to the standards of the issuer’s industry peers. Investors should therefore make a personal ethical assessment of the benchmark index’s ESG screening prior to investing in the Fund. Such ESG screening may adversely affect the value of the Fund’s investments compared to a fund without such screening.

Investments in the Global Clean Energy industry are subject to environmental concerns, taxes, government regulation, price, supply and competition.

Investments in the water industry are subject to environmental concerns, taxes, government regulation, price and supply fluctuations.

Liquidity Risk: Lower liquidity means there are insufficient buyers or sellers to allow the Fund to sell or buy investments readily.

© 2017 BlackRock, Inc. All Rights reserved. BLACKROCK, BLACKROCK SOLUTIONS, iSHARES, BUILD ON BLACKROCK, SO WHAT DO I DO WITH MY MONEY and the stylized i logo are registered and unregistered trademarks of BlackRock, Inc. or its subsidiaries in the United States and elsewhere. All other trademarks are those of their respective owners.

Disclaimers


Documents

BlackRock Sustainable ETFs and Index Investments · ESG best in class index methodology - graph Source: MSCI, December 2016 MSCI index (equity) Bloomberg-Barclays index (fixed income)