- BlackRock is a global investment management corporation with over $5.42 trillion assets under management as of March 2017. It has over 12,000 employees across more than 30 countries. - Environmental, social and governance (ESG) factors have increased in significance for investors over time, driven by various regulations, initiatives and events. BlackRock's Investment Stewardship team engages with companies to promote long-term sustainable value. - In 2017-2018, the team's engagement priorities include board oversight of long-term corporate strategy, executive compensation linked to long-term goals, disclosure of climate change risks, and human capital management.

1. Promoting sustainability – an investor
perspective
Amra Balic, Managing Director
June 2017
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2. BlackRock at a glance
* As of 31 March 2017
• Established in 1988
• NYSE: BLK
• $5.42 trillion assets under management
• More than 12,000 employees
• More than 1,800 investment professionals
• Offices in over 30 countries
• 25 primary investment centers globally
• Clients in over 100 countries
• Over 800 iShares® ETFs Globally
• Through BlackRock Solutions, the Firm provides risk
management and enterprise investment services for over 200
clients
• Financial Markets Advisory business managed or advised on
over $8 trillion in asset and derivative portfolios
• Transition Management team partners with clients to save costs
and reduce risks when changing investment exposures
BlackRock facts * $5.42 trillion managed across asset classes
Create a better financial future for our clients by building
the most respected investment and risk manager in the world
BlackRock Mission Statement
Assets as of 31 March 2017
1 Includes commodity and currency mandates
Active Equity
286 bn
Passive
Equity
2.6 tn
Alternatives1
121 bn
Active
Fixed Income
765 bn
Passive
Fixed Income
865 bn
Multi-Asset
412 bn
Cash
Management
389 bn
Advisory
3 bn
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3. Environmental, Social & Governance (ESG) has grown in significance
3
1995 1997 2000 2004 2006 2007-08 2010 2011 2012 2013 2014 2015
2004
Dutch Corporate
Governance code
2005
UNEP Finance Initiative
commissioned a report from
Freshfields on the
interpretation of law with
respect to investors and ESG
issues concluding integration
was part of Fiduciary Duty
2007– 2008
Financial
Crisis
2008
Bloomberg
launches ESG
Platform
2011
Bloomberg now
has 5,217
companies
reporting on ESG
indicators since
2013
Emergence of
fossil fuel
divestment
movement
1995
Dutch
Green
investment
directive
2000
UN Global
Compact
established
2006
UN PRI
guidelines
issued – 68
founding
signatories
2010
UK Stewardship
Code
2012
$13.3t in SRI
strategies
2014
• European Parliament
approved disclosure of
ESG information by
certain large listed
European companies
• $21.4t in SRI strategies
• Montreal carbon pledge
2015
• France pass law
requiring French
investors to report
on the climate
impacts of their
investments
• 1,372 UNPRI
signatories
• USA Clean
Power Plan
2016
2016
• Member States finalise
the EU Directive on
non-financial disclosure
• Ratification of the
Paris agreement
• Dutch corporate
governance code update
2017
2017
• UK Consultation on
Corporate Governance
• Following the adoption
of the revised
Shareholder Rights
Directive (SRD II),
publication of
engagement policies
by asset owners and
managers
1997
GRI founded
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4. BlackRock Investment Stewardship in practice
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5. Our Investment Stewardship helps BlackRock fulfil its fiduciary duty to
investors to protect and enhance the economic value of their assets
Investment Stewardship team capabilities
The core components of the program are:
with management or board
members on corporate
governance, social and
environmental factors
Engaging
in market level dialogue to
understand and contribute to the
development of policies and
practices that support long-term
shareholder value creation
Participating
corporate governance, including
environmental and social factors,
impacting the long-term value of
our clients’ investments
Analyzing
at company shareholder
meetings in the best long-term
economic interests of
shareholders
Voting
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6. Investment Stewardship engagement priorities for 2017-2018*
6
*Reporting cycle from July 2017 to July 2018.
Governance
Corporate
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.
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7. 7FOR PROFESSIONAL CLIENTS AND QUALIFIED INVESTORS ONLY
Unless otherwise stated all data is as at 31 March 2017, Source; BlackRock.
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