For instance, BlackRock uses certain external ESG ratings to contribute to three main themes driving its ESG integration efforts: investment processes, material insights, and transparency. The firm creates its own internal ESG ratings based on the data provided by third parties and its own set of analytic tools. Blackrock's actively-managed funds and advisory strategies are ESG-integrated, meaning that portfolio managers are accountable for managing exposure to material ESG risks, and investment teams are required to demonstrate how they incorporate ESG information into their investment strategies. Similarly, State Street developed an internal ESG scoring system based on external ESG ratings and other data from third-party providers. It then uses internal scores to inform investment decisions and advise both companies and investors.