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BlackRock LifePath® Index 2060 K LIZKX Sustainability

| Analyst rating as of | See BlackRock Investment Hub

Sustainability Analysis

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Sustainable Summary

BlackRock LifePath® Index 2060 Fund has a number of attributes that may meet the expectations of sustainability-focused investors, despite some issues worthy of attention.

BlackRock LifePath® Index 2060 Fund has an average Morningstar Sustainability Rating of 3 globes, indicating that the ESG risk of holdings in its portfolio is similar to that of its peers in the Target Date category. Investors concerned about ESG risk may be better off with funds in the category that receive 4 or 5 globes, as they tend to invest in securities less exposed to ESG risk. ESG risk measures the degree to which material environmental, social, and governance issues, such as climate change and inequalities, could affect valuations. ESG risk differs from impact, which is about driving positive environmental and social outcomes for society’s benefit.

BlackRock LifePath® Index 2060 Fund has a Carbon Risk Score of 8.63, indicating portfolio companies face low carbon-related risks in the transition to a low-carbon economy. Currently, the fund has 8.39% involvement in fossil fuels, which compares favorably with 8.48% for its average category peer. Companies are considered involved in fossil fuels if they derive some revenue from thermal coal, oil, and gas.

One potential issue for a sustainability-focused investor is that BlackRock LifePath® Index 2060 Fund doesn’t have an ESG-focused mandate. Funds with an ESG-focused mandate would have a higher probability to drive positive ESG outcomes.

The fund exhibits moderate exposure (2.37%) to companies with high or severe controversies. From bribery and corruption to workplace discrimination and environmental incidents, controversies are incidents that may negatively affect stakeholders, the environment, or the company’s operations.

ESG Commitment Level Asset Manager

 | Basic

An ESG Commitment Level Asset Manager rating is not assigned to this investment.

Morningstar analysts award an ESG Commitment Level Asset Manager ratings to investments that also receive Morningstar Analyst Ratings. Not all investments currently have Asset Manager rating. Morningstar is expanding its coverage, prioritizing investments that are most relevant to investors.