EU: They selected BlackRock as advisor. They are also considering hiring Al Capone to fight criminality!

Finance Watch denounces the incoherence of the selection of BlackRock by the European Commission to integrate ESG factors into EU banking frameworks

By Charlotte Geiger
April 9, 2020
Brussels, 9 April 2020 – Finance Watch, the public interest association dedicated to make finance serve society, denounces the decision by the European Commission DG FISMA, announced on 8 April, to award Blackrock Investment Management a contract to oversee the “Development of Tools and Mechanisms for the Integration of ESG factors into the EU Banking Prudential Framework and into Banks’ Business Strategies and Investment Policies”.
Notwithstanding fundamental questions such as the negative impact that this will have on the credibility of the European Commission’s Sustainable Finance strategy and its ambitious consultation published the very same day, there is an obvious conflict of interest for the largest asset manager in the world to make recommendations on the prudential treatment of banking institutions that are part of its investment universe.

BlackRock to advise EU on environmental rules for banks

By Jasper Jolly
12 Apr 2020
BlackRock, one of the world’s largest investors in banks and fossil fuel companies, has been hired by the EU to work on potential new environmental rules for banks.
Campaigners raised concerns about potential conflicts of interest, given BlackRock’s widespread financial interests in sectors that could be directly impacted by new environmental rules.
The European commission, the EU’s executive arm, said this week that BlackRock had beaten eight other bidders on a contract to study how the EU could best integrate environmental, social and governance (ESG) factors into its banking supervision.

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EU picks BlackRock to advise on ESG integration for banking

By Margaryta Kirakosian The European Commission has hired BlackRock to provide advice for the integration of ESG factors into the European Union banking.
The main objective of the initiative is to help EU banks to integrate ESG risks into their risk management processes, which covers their business strategies and investment policies.
BlackRock’s specialist unit overcame eight other bidders to win the mandate that will be executed by the financial markets advisory unit of the firm, which, according to a spokesperson, is separate from its investment management business.

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