Principles for Responsible Investment

BlackRock has been a signatory to the United Nations supported Principles for Responsible Investment (PRI) since 2008. The PRI is an independent nonprofit that encourages investors to use responsible investment to enhance returns and better manage risks. For more information see the About PRI page of the organization’s website.

As a signatory, BlackRock has committed to the annual effort of supporting PRI’s aspirational and voluntary principles, where consistent with our fiduciary duties.

1. We will incorporate ESG issues into investment analysis and decision-making processes.
2. We will be active owners and incorporate ESG issues into our ownership policies and practices.
3. We will seek appropriate disclosure on ESG issues by the entities in which we invest.
4. We will promote acceptance and implementation of the Principles within the investment industry.
5. We will work together to enhance our effectiveness in implementing the Principles.
6. We will each report on our activities and progress towards implementing the Principles.

2021 Highlights

Assessment Context

PRI introduced a significantly redesigned Pilot Reporting Framework for the 2021 reporting cycle, which impacted the scoring system and several modules of the assessment. PRI provides an overview of the methodology changes here. PRI’s 2021 assessment methodology for investors can be found here and its investor reporting guidance can be found here.

The new Pilot Reporting Framework methodology introduced a significant change to the grading system from an alphabetical (A+ to E) system to a numerical (1 to 5 stars) system, such that the 2021 reporting cycle cannot be compared to previous years. See PRI’s methodology changes PowerPoint here for further information on the new scale. Among other changes, the new methodology also replaced the firm level “Strategy & Governance” score used in 2020 with a new “Investment & Stewardship Policy” module and introduced modules for “Hedge Funds” and for “Voting” across asset classes.

In 2021, PRI also piloted a new online reporting tool for signatories to submit data for the annual assessment reports. Following issues encountered by signatories in completing the new Pilot Reporting Framework, the release of the 2021 reports was pushed from mid-year 2021 to June, 2022 (PRI memo here). The final reports were released in early September 2022 approximately 15 months after data was submitted.

2021 Assessment Report Results

BlackRock’s 2021 Assessment Report reflects the 2020 reporting period.

  • Across almost all modules, BlackRock scored either 5 or 4 stars.
  • Although the firm performed the least well across Hedge Funds modules (2-4 stars), which are notably the newest modules within the Pilot Reporting Framework, the achieved scores were well above the median.
  • BlackRock received 4 stars with a score of 88% in the Investment and Stewardship Policy module with 22 out of 30 sub-indicators in this module receiving a top score.
  • The firm scored very well (5 stars) across the Active Equity modules (Active Quantitative, Active Fundamental) and the Private Markets modules (Private Debt, Private Equity, Real Estate, Infrastructure) with a notable 100% score on Infrastructure.
  • The firm also performed well across the fixed income modules (4 stars).

Please refer to our full Transparency Report and Assessment Report for additional information.

2021 BlackRock Assessment Report

2021 BlackRock Transparency Report Part 1

2021 BlackRock Transparency Report Part 2

The table below summarizes BlackRock’s 2021 PRI Assessment Scores:

  2021 BLK
Stars (1-5)		 2021 BLK Score
(0-100%)		 2021 Median Delta
Investment & Stewardship Policy 4 88% 60% +28
Managed by BlackRock        
Listed Equity – Active quantitative 5 96% 65% +31
Listed Equity – Active fundamental 5 96% 71% +25
Listed Equity – Investment trusts 5 96% 66% +30
Listed Equity – Passive – Incorporation 4 67% 35% +32
Listed Equity – Active quantitative - Voting 4 83% 61% +22
Listed Equity – Active fundamental- Voting 4 83% 54% +29
Listed Equity – Investment Trusts- Voting 4 83% 60% +23
Listed Equity – Other- Voting 4 83% 58% +25
Listed Equity – Passive - Incorporation- Voting 4 83% 57% +26
Fixed Income – SSA 4 79% 50% +29
Fixed Income- Corporate 4 88% 62% +26
Fixed Income – Securitized 4 76% 55% +21
Fixed Income – Private Debt 5 96% 67% +29
Private Equity 5 93% 66% +27
Real Estate 5 98% 69% +29
Infrastructure 5 100% 77% +23
Hedge Funds – Long/short equity - incorporation 4 66% 57% +9
Hedge Funds – Long/short equity – Voting 4 77% 0% +77
Hedge Funds – Long/short credit 3 59% 29% +30
Hedge Funds – Distressed, special situations, and event driven fundamental 3 59% 0% +59
Hedge funds – Other 2 35% 9% +26
Advisory        
Listed Equity – Passive 4 69% 57% +12
Listed Equity – Active 4 84% 67% +17
Fixed Income – Passive 4 69% 43% +26
Fixed Income – Active 4 84% 57% +27
Private Equity 5 91% 63% +28
Real Estate 4 89% 62% +27
Infrastructure 5 91% 71% +20
Hedge Funds 4 89% 34% +55

Source: PRI Data Portal, as of 9/9/2022

PRI provides an overview of the methodology changes here. PRI’s 2021 assessment methodology for investors can be found here and its investor reporting guidance can be found here.

2020 Highlights

  • BlackRock earned an A+ Strategy & Governance score, reflecting the strength of our overall sustainable investing and ESG integration programs. The median score for large asset managers was A.
  • BlackRock Investment Stewardship (BIS) earned an A+ for Listed Equity Active Ownership. This stands out from the median score of B for large asset managers.
  • BlackRock improved its score across direct investment practice areas with A+ earned in Listed Equity (Incorporation and Active Ownership), Fixed Income (SSA, Corporate Financial, Corporate non-Financial), Private Equity, Property and Infrastructure. BlackRock investment teams have dedicated significant resources in recent years to integrate ESG into investment practices and communicate their efforts clearly.
  • BlackRock continues to increase transparency and report on new practice areas. In 2020 we reported our infrastructure solutions activities for the first time and received an A+.

Please refer to our full 2019 and 2020 Transparency Report and Assessment Report for additional information.

2020 BlackRock Transparency Report 2019 BlackRock Transparency Report
2020 BlackRock Assessment Report 2019 BlackRock Assessment Report

Below is BlackRock’s 2020 PRI assessment report card:

  2019 BLK Score 2020 BLK Score 2020 Median
Strategy & Governance A+ A+ A
Managed by BlackRock
Listed Equity Incorporation A A+ A
Listed Equity Active Ownership A+ A+ B
Fixed Income SSA A A+ B
Fixed Income Corporate Financial A A+ B
Fixed Income Corporate Non-Financial A A+ B
Fixed Income Securitized B A B
Private Equity A A+ A
Property A A+ B
Infrastructure A A+ A
Advisory
Listed Equity A A A
Fixed Income SSA A A B
Fixed Income Corporate Financial A A A
Fixed Income Corporate Non-Financial A A A
Fixed Income Securitized A A A
Private Equity A A+ A
Infrastructure   A+ A

Source: PRI Data Portal, as of 8/31/2020

More information on the assessment methodology can be found on PRI’s website, “How investors are assessed on their reporting,” and a companion document explaining the assessment of each indicator. Whether we receive strong or improving scores, we are committed to developing our ESG integration capabilities, and we work continuously to enhance our existing programs.

Ratings, rankings and awards shown herein may not be indicative of BlackRock’s investment performance, or any future investment performance or sustainability accomplishments. BlackRock has sourced these ratings, rankings and awards from third party providers. We have not solicited or paid for any of these ratings, rankings and awards. The rating, ranking or award may not be representative of any client’s individual experience.

The information and opinions contained herein are derived from third party sources deemed by BlackRock to be reliable, but are not necessarily all inclusive and are not guaranteed as to accuracy or completeness. No part of this material may be reproduced without the prior written consent of BlackRock.