{"id":14343,"date":"2021-06-30T16:08:58","date_gmt":"2021-06-30T14:08:58","guid":{"rendered":"https:\/\/reclaimfinance.org\/site\/?p=14343"},"modified":"2023-03-29T14:13:53","modified_gmt":"2023-03-29T12:13:53","slug":"hijacked-exposing-blackrocks-grip-on-the-eus-climate-finance-plans","status":"publish","type":"post","link":"https:\/\/reclaimfinance.org\/site\/en\/2021\/06\/30\/hijacked-exposing-blackrocks-grip-on-the-eus-climate-finance-plans\/","title":{"rendered":"Hijacked: Exposing BlackRock’s Grip on the EU’s Climate Finance Plans"},"content":{"rendered":"

A new report from Reclaim Finance and the <\/span>Observatoire<\/span> des <\/span>multinationales<\/span> has revealed a wide-ranging lobbying operation by asset management titan BlackRock, aimed at influencing the European Union\u2019s sustainable finance strategy. This comes shortly before the release of the strategy, and amidst ongoing controversy about the role of BlackRock in shaping EU environmental policies.<\/span><\/span><\/strong>
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Making Friends and Influencing People<\/span><\/b>\u00a0<\/span><\/h1><\/span>
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The report details the 23 trade associations, groups and thinktanks to which BlackRock belongs, and the roughly <\/span>\u20ac30million these groups spend per year lobbying EU institutions<\/span><\/b>, also employing 260 staff<\/span>. <\/span><\/b>Analysis of responses by these groups to <\/span>22 EU public consultations related to sustainable finance.<\/span><\/b> reveals resistance to stringent requirements and to sustainable finance regulation This lobbying web has secured a prominent place in the Commission\u2019s working groups, including on green finance.<\/span><\/p>\n

Other linchpins of BlackRock\u2019s influence web in Brussels include leading think tank Bruegel, platforms Eurofi and EPFSF which organize public private events, and Public Relations firm Fleishman-Hillard.<\/span> The report delves into the relationships and hiring practices taking place between BlackRock and government. <\/span><\/p>\n<\/div>

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<\/b>Starting to Pay Dividends<\/b>\u00a0<\/span><\/h2><\/span>
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The report details where BlackRock\u2019s efforts are bearing fruit, after it successfully pushed for voluntary Green Bond Standards (rather than mandatory). Nine previous contracts between BlackRock and EU institutions and agencies since 2016 are detailed, among them a contract to help the European Commission design ESG banking rules. The European Ombudsman <\/span>found<\/span><\/a> that t<\/span>he EU \u2018did not properly consider conflicts of interest\u2019 in awarding this work<\/span><\/b>.<\/span><\/p>\n

The impacts extend wider still. BlackRock\u2019s lobbying web – including 4 of the 6 groups in which it holds a senior role – <\/span>actively opposed the creation of a taxonomy on harmful activities<\/span><\/b> as well as lobbied to delay the implementation of stringent disclosure rules, two tools aimed at reducing greenwashing. <\/span><\/p>\n<\/div>

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<\/b>BlackRock\u2019s Climate Finance Approach<\/b>\u00a0<\/span><\/h2><\/span>
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The report argues that BlackRock\u2019s approach to climate finance regulation is based on <\/span>more data and disclosure<\/span><\/b>, while <\/span>pushing back against science-based sustainability definitions and the imposition of environmental restrictions on financial players<\/span><\/b>. It also outlines BlackRock\u2019s multiple ties to the fossil fuel sector in both investments and at director-level, suggesting that this might inform its \u2018fifty shades of green\u2019 position. <\/span><\/p>\n

Ahead of the release of the Sustainable Finance strategy, the report\u2019s authors argue for a rethink of our financial systems and for firm regulation to reflect the need for no investments in new oil, gas and coal. BlackRock, they suggest, should not be in the driving seat.<\/span><\/p>\n<\/div><\/div><\/div><\/div><\/div>

Read the full report<\/i><\/b><\/p>\n<\/div>

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<\/u><\/i><\/b>Download the report<\/u><\/i><\/b><\/a><\/p>\n<\/div>

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Find out more<\/span> :<\/span><\/span>
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