On learning that BlackRock, the world's largest asset manager with a $7.8 trillion portfolio, had been chosen to advise the Commission on how to integrate environmental, social and governance (ESG) criteria into banking regulation, MEPs had questioned the choice of a US company with more than $87 billion in assets in large fossil fuel multinationals and major banking institutions.

They also noted that BlackRock had won the contract to advise on sustainable finance after offering a knockdown price--€280,000 euros--and therefore wondered about the real willingness of the world's largest fund in this operation.

In her report published on Wednesday, EU mediator Emily O'Reilly questioned the price of this offer, believing that this contract could benefit BlackRock in order to defend its own interests or those of its clients.

“The company clearly has an interest in the development of future European regulations that will have an impact on itself and its clients,” notes O'Reilly.

Cancellation request

She does not ask for the termination of the contract, but asks for more vigilance on the part of the Commission when awarding this type of contract.

Taking advantage of this sharp opinion, some MEPs in the green movement wrote to Commission president Ursula von der Leyen asking her to “immediately cancel the contract awarded to BlackRock.”

In its defence, BlackRock states that “the European Commission has already publicly indicated that the technical quality of the proposal of FMA--the Financial Markets Advisory division of BlackRock, editor's note--was the decisive criterion for the decision to award the mandate.”

The fund manager also insists on the clear separation that exists between its advisory teams and fund management activities. Finally, Blackrock also emphasized its commitment to sustainable finance in these investment strategies.

This article was originally published in French on Paperjam.lu and has been translated and edited for Delano.