EU Watchdog Warns of Risks after BlackRock Appointed as ESG Advisor
According to a ruling by the European Union’s watchdog, BlackRock's links with the fossil fuel industry and banks create potential conflicts of interest to fulfill the ESG mandate-
In March, the Commission awarded BlackRock’s Financial Markets Advisory arm a mandate to help incorporate environmental, social and governance factors into European banking rules.
According to the ruling, the EU’s executive body “did not provide sufficient guarantees to exclude any legitimate doubt” of potential conflicts of interest when it hired the world’s largest asset-management firm. The decision has no legal power to force the Commission to cancel the mandate but may pressure the body to do so.