BlackRock’s growing clout carries risks for us, citizens who would like public goods like health to stay public, and climate crisis to be fought by governments not games by clever carbon financiers for profit ft.com/content/6a587e…
the FT piece gets wrong what is at stake for Blackrock in the Sustainable Finance contract with the European Commission: this is not Blackrock imposing Commission rules, but fighting against them! 
it's a battle over rules of what is green and what is brown, and who decides the two. This is probably, Covid19 aside, the most important political battle of 2020 if you think climate crisis is real.
The battle is: should the public (the European Commission) or the private sector (Blackrock) create taxonomies for sustainable (green) finance?
For past three years, the Commission bravely went for public rules for greening finance. It gave us the Sustainable Finance taxonomy.
For past three years, the Commission bravely went for public rules for greening finance. It gave us the Sustainable Finance taxonomy.
Blackrock & private finance have lobbied hard against the public Taxonomy, because it does something Blackrock hates: it tells us whether a company's economic activity is harming the environment.
as @forfinancewatch points out, Blackrock prefers single-materiality rules that only capture the impact of climate crisis on companies and can be used to protect investor portfolios from 'stranded assets'.
this is why whenever you see ESG (environmental, social and governance) standards/ratings, recall this is a finance industry talking point - a fightback in the political struggle over standards for 'green' finance, and against the Commission's taxonomy.
worrying about Blackrock getting Commission contract is not just political clout, but it signals that the Commission is backtracking on using its OWN taxonomy to green finance - read here the ongoing Consultation if you doubt that
ec.europa.eu/info/consultat…
ec.europa.eu/info/consultat…
Commission now saying - let's go with standards of private finance to design our rules for greening finance.
But it knows private ESG is open door to greenwashing, which is why it's quietly contemplating its own ESG benchmark
But it knows private ESG is open door to greenwashing, which is why it's quietly contemplating its own ESG benchmark
this is can-kicking of exquisite proportions, because it would take years for Commission to come up with one, given the complex lobbying around, because ESG is devilishly difficult to get right, and to apply to fixed income instruments.
By going down ESG route, as Blackrock appointment suggests, Commission is abdicating its duty to climate proof European economies.
instead it should focus on extending Taxonomy to brown activities, as mandated by Council, & tightening its definition of green-already watered down
instead it should focus on extending Taxonomy to brown activities, as mandated by Council, & tightening its definition of green-already watered down
so yes, it's heartwarming that EU Climate Ministers jointly call for a green recovery post-pandemic, but guys, you're already loosing the battle.
climatechangenews.com/2020/04/09/eur…
climatechangenews.com/2020/04/09/eur…
