What’s the problem?
The scandal broke in April: BlackRock will advise the European Commission on sustainable banking rules – while itself is holding shares worth billions of dollars in European banks and fossil fuel companies. Even after massive criticism from civil society, the Commission said they will stick with BlackRock.
The EU claims to have ambitious plans to make banks and companies more sustainable. Yet, asking BlackRock to give advice on a centerpiece of its sustainability agenda shows that they are still too open to undue influence by big financial players. Letting big banks and investment funds set the agenda on sustainable finance is a recipe for disaster.