Green Finance media highlights the following:
The European Commission has finally published the report it commissioned from BlackRock!
This report, which is nearly 300 pages long, covers the following topic: the development of tools and mechanisms for the integration of ESG factors into the EU banking prudential framework and banks' business strategies and investment policies
Before we begin, let us back-track a little...
Several months ago, several stakeholders were upset about a conflict of interest: BlackRock was appointed to draft a report on ESG, for a sum close to EUR 300 000, i.e. nearly EUR 1 000 per page.
For example, Emily O'Reilly, (the European Union Ombudsman), issued an opinion on this report on 20 November 2020 [...].
Obviously, the conflict of interest is not only about the price of the page.
At the same time, others spoke of a takeover of Europe! [...]
But what exactly is in this report?
The American asset manager, Black Rock (AUM: 9 700 billion) criticizes the lack of a clear definition of ESG (environmental, social and governance criteria) among banks and regulators.
"Let us ignore the conflict of interest and focus solely on the report. This report is interesting and highlights some key points.
It is a genuine relief that Europe is finally noticing the ins and outs of green financing. Europe must now take action and quickly.
Stated Bruno Boggiani, CEO of Strateggyz ? Green Finance
Here are the main points of interest:
At present, there is no common and accurate definition of ESG risks among banks.
Banks have not yet developed a clear mapping of how various ESG factors feed the different types of financial risks
The integration of ESG risks into risk models and stress tests is still in its infancy.
Among regulators, there is no standard definition of ESG.
The majority of regulatory bodies have not yet defined quantitative indicators to measure ESG risks.
Green bonds or the European taxonomy could become mandatory.
Find the complete Green Finance article and the report here
The original source-language text of this announcement is the official, authoritative version. Translations are provided as an accommodation only, and should be cross-referenced with the source-language text, which is the only version of the text intended to have legal effect.
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