BlackRock ESG ETF Data Analysis

Carbon Intensity

Figure 1 explores the relationship between the ESG quality score and the weighted average carbon intensity of all funds (ESG and regular), as well as their distribution across developed and emerging markets.

As shown, the ESG quality scores of funds and their carbon intensities are negatively correlated, i.e., funds with higher carbon emissions have correspondingly lower ESG quality scores, and funds with lower carbon intensity have correspondingly higher ESG quality scores.

In addition, the points of the funds in developed markets are mainly distributed in the lower right, representing lower carbon intensity and higher ESG quality; the points of the funds in emerging markets are mainly distributed in the upper left, representing higher carbon intensity and lower ESG quality.

MSCI ESG Ratings

Figure 2 shows the performance of funds in different regions under the MSCI ESG rating system.

Funds rated A, AA and AAA are primarily located in North America. Funds located in Europe are rated primarily at AAA, funds located in Asia Pacific and the Middle East and Africa are rated mostly at B, and funds located in Latin America are largely rated at BB. In addition, the ratings of globally based funds are distributed relatively even, with no clear pattern.

Years from Inception

Figure 3 explores whether a fund’s year from inception correlates with its ESG rating.

For funds issued in the last 20 years, there is no clear correlation between a fund’s years and its ESG rating, i.e., it is not the case that the more recently incepted a fund will have a higher ESG rating.