Sustainable, Responsible &/or ESG Policy:

The Fund is a sub-fund of BlackRock Authorised Contractual Scheme I taking the form of a Co-ownership Scheme. As a consequence of this, the Fund may be treated as tax transparent for the purpose of income and/or capital gains by relevant taxing jurisdictions. Each investor should take appropriate professional advice as to the tax treatment of their investment in the Fund. Investors in the Fund must be Eligible Investors as defined in the Fund’s prospectus and must have completed all relevant documentation prior to the purchase of units in the Fund.

The Fund aims to provide a return on your investment (generated through an increase to the value of the assets held by the Fund and/or income received from those assets) by tracking closely the performance of the MSCI World ESG Focus Low Carbon Screened Index, the Fund’s benchmark index (the “Benchmark Index”). The Fund invests in equity securities (e.g. shares) of companies that make up the Benchmark Index. Derivatives may also be used for investment and efficient portfolio management purposes (i.e. the price of an investment is based on one or more underlying asset). The use of derivatives is expected to be limited.

The Benchmark Index aims to reflect the performance characteristics of a subset of equity securities within the MSCI World Index (“Parent Index”) and seeks to maximise exposure to positive environmental, social and governance (ESG) factors while minimising the carbon exposure. The Fund may obtain indirect exposure (through including but not limited to, derivatives and units in collective investment schemes) to securities considered not to satisfy the ESG criteria.

The Benchmark Index is derived from the Parent Index by selecting companies on account of their low carbon emissions exposure compared to other companies in the Parent Index. The Benchmark Index is constructed using the index provider model (the “Model”). The eligible universe for the Benchmark Index is all the securities in the Parent Index that are not involved in very severe ESG controversies (“Red flags”), controversial weapons (such as but not limited to, all companies that are involved in the production of cluster bombs and munitions, anti-personnel landmines, anti-vehicle landmines, depleted uranium weapons and armour, chemical and biological weapons), nuclear weapons, tobacco (all producers excluded, retailers, licensors, distributors excluded if >15% revenue), thermal coal (>30% revenue) and civilian firearms (all producers excluded, retailers excluded if >5% revenue). The Model is subject to certain risk diversification constraints, for example, minimum and maximum constituent, sector and country weights relative to the Parent Index and the anticipated volatility of the Benchmark Index may not exceed 0.5% the anticipated volatility of the Parent Index. The Model is also subject to carbon and ESG constraints relative to the Parent Index, for example it targets a reduction in carbon emission intensity of at least 50%, a reduction in carbon reserves intensity of at least 50%. The Benchmark Index measures the performance of equity securities of large and mid-capitalisation companies across developed countries globally.

The Fund is passively managed and the investment adviser has limited discretion to select the Fund’s investments and in doing so will take into consideration the Benchmark Index.

(Source: BlackRock website & KIID, February 2023)