In October 2024, ClientEarth filed a complaint against BlackRock with the French Financial Markets Authority (AMF), also known as the Autorité des Marchés financiers. ClientEarth targeted 18 actively managed retail investment funds that were marketed in France as sustainable. ClientEarth notes that these funds hold more than US$ $1 billion in fossil fuel investment. As a result, ClientEarth claims that BlackRock violates the EU Sustainable Finance Disclosure Regulation (SFDR) by holding inconsistent investments to gain an unfair competitive advantage. Second, ClientEarth claims that BlackRock failed the ‘do not cause significant harm’ test of the SFDR, which requires investment funds promoting environmental benefits to make additional sustainability disclosures on their websites and in pre-contractual and periodic reporting. All of which, ClientEarth claims, BlackRock failed to do.

In response, BlackRock announced changes to its funds previously titled sustainable or ESG. Fourteen of the funds dropped the "sustainable" title from their names, while the rest applied stricter fossil fuel exclusions. BlackRock claims these changes were in response to new disclosure polices by the European Securities and Markets Authority.

Despite these changes, ClientEarth will continue to keep its complaint with the AMF. The financial regulator has not indicated whether the case will move forward.

ClientEarth v. BlackRock

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ClientEarth v. BlackRock - complaint

Filed

In October 2024, ClientEarth filed a complaint against BlackRock with the French Financial Markets Authority (AMF), also known as the Autorité des Marchés financiers. ClientEarth targeted 18 actively managed retail investment funds that were marketed in France as sustainable. ClientEarth notes that these funds hold more than US$ $1 billion in fossil fuel investment. As a result, ClientEarth claims that BlackRock violates the EU Sustainable Finance Disclosure Regulation (SFDR) by holding inconsistent investments to gain an unfair competitive advantage. Second, ClientEarth claims that BlackRock failed the ‘do not cause significant harm’ test of the SFDR, which requires investment funds promoting environmental benefits to make additional sustainability disclosures on their websites and in pre-contractual and periodic reporting. All of which, ClientEarth claims, BlackRock failed to do.

In response, BlackRock announced changes to its funds previously titled sustainable or ESG. Fourteen of the funds dropped the "sustainable" title from their names, while the rest applied stricter fossil fuel exclusions. BlackRock claims these changes were in response to new disclosure polices by the European Securities and Markets Authority.

Despite these changes, ClientEarth will continue to keep its complaint with the AMF. The financial regulator has not indicated whether the case will move forward. 

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An aim to achieve a quantifiable outcome within a given time-frame, set by an institution such as a national government.

Policy instruments are techniques or tools used by governing authorities to promote certain policies in order to achieve predetermined goals. Put simply, instruments are how a government tries to achieve its goals, with this taxonomy being focused on national policy instruments.

Risk is the potential for adverse consequences resulting from the dynamic interplay between (climate-related) hazards, exposure, and vulnerability of affected human or ecological systems.

Groups  of people who are adversely affected by climate change or the response to it

A set of principles, processes, and practices that build economic and political power to shift from an extractive economy to a regenerative economy.

Justice is the ethical and political framework that addresses fairness, including issues of responsibility, rights, and structural inequity.

Renewable energy means all forms of energy produced from renewable sources in a sustainable manner.

Fossil fuel is a generic term for non-renewable energy sources such as coal, fossil gas, and oil (including crude oil, and petroleum products), that can be used for electricity and heat generation. Fossil fuels are hydrocarbons formed from pressurised and heated organic material buried over millions of years.

Molecules in the atmosphere that play a key role in the greenhouse effect by trapping heat radiating from Earth’s surface.

Area of the economy in which actors engage in identical or related activities.

In human systems, the process of adjustment to actual or expected climate change and its effects, in order to moderate harm, increase resilience or exploit beneficial opportunities. In natural systems, the process of adjustment to actual climate change and its effects; human intervention may facilitate adjustment to expected climate change and its effects.

The management and allocation of funds, assets and investments to meet various objectives

A loan is a policy instrument where funds are provided to a borrower with the expectation of repaying the principal plus interest.

Direct investments by the governments using public funds. This can be to support climate initiatives or integrate climate into other projects.

Tradable permits are market-based tools that grant permission for specific activities, frequently used to regulate emissions. These permits can be issued within a trading system to manage environmental impacts.

Codes and standards are regulatory instruments that specify minimum standards to protect health and safety. This ranges from performance standards, which prescribe outcomes while allowing flexibility to achieve compliance, to the more prescriptive approach of technology-specific standards.

The processes through which enterprises can identify, prevent, mitigate and account for how they address their actual and potential adverse impacts. Due diligence is the idea that reasonable precautions should be taken to avoid causing harm to people, the environment, or society. It also involves identifying and mitigating risks before they occur.

A ban is a legal action that prevents the sale or supply of a product or service, or that recalls a product from the market. Examples are bans on SF6, greenwashing, fossil fuel advertisement or single-use plastics.

A financial institution that manages a country's currency and can promote climate-related initiatives through green monetary policy and other means.

A company that is owned wholly or partially by the state, typically operating in key sectors.

A target to reduce the prevalence of a greenhouse gas over a specific time frame

A commitment to balance GHG emissions with removal by a certain point in time, effectively reducing the net emissions to zero

Either money or something of monetary value is transferred between two or more organisations, people or countries.

A long-lived, colourless gas, chiefly emitted from fossil fuel combustion, deforestation and cement production.

A potent, short-lived greehouse gas, largely released from livestock, fossil fuel extraction and waste management.

Agriculture mitigation refers to practices used to mitigate greenhouse gas emissions at every level of the agrifood systems, from production to consumption.

Actions to reduce emissions in energy generation and supply.

Air pollution involves harmful contaminants in the air, affecting both indoor and outdoor environments. It can lead to health issues like respiratory diseases and heart problems, and climate impacts such as global warming. Pollutants can damage plants, trees, habitats, and water bodies like rivers and lakes.

Kinetic energy of airflow transformed into useful energy, mostly electrical energy.

Oil is a combustible liquid fossil fuel composed mainly of hydrocarbons, occurring as crude oil and refined into petroleum products such as petrol, diesel and kerosene.

Fossil gas, commonly known as natural gas, is a fossil fuel consisting chiefly of methane with smaller amounts of other hydrocarbons and trace gases, found in underground deposits.

Coal is a combustible sedimentary rock formed from carbonised plant matter, rich in carbon and hydrocarbons, and occurring in several main types including hard coal and brown coal.

woman and genders outside of the gender binary

Any compulsory, unrequited payment to the government levied on corporations or individuals. This can be for environmental reasons, such as introducing a Carbon tax to set a price that emitters must pay for the greenhouse gases they emit.

Activities of industries that extract natural resources, such as mining, oil, and gas, for commercial use.

The activities of industries that transforms raw materials into finished goods through industrial processes.

The activities of industries involved in the production, distribution, and sale of energy, including electricity, gas, and renewables.

Activities that involve planning, designing and building infrastructure, residential, and commercial structures.

This sector involves activities to move goods and people, alongside the storage of products.

This sector creates and distributes information and entertainment through television, radio, print, and digital platforms.

Activities of businesses and institutions that provide financial services and products to individuals and organisations.

Activities that involve the cultivation of crops and raising of livestock for food, fibre, and other products essential for human life and industry.

Any substance with chemical properties that can cause physical harm to people or damage the environment, including ammonia, carbon monoxide, phosphine, chlorine, arsenic, cadmium, mercury, pesticides, dioxins, microplastics, benzene, asbestos, aflatoxins, fluoride, methanol, and toxins from marine sources.

Slow onset events evolve gradually from incremental changes over many years or from increased frequency or intensity of recurring events. As defined in the Cancun Adaptation Framework (2010), slow onset events include risks and impacts from rising temperatures, desertification, biodiversity loss, land and forest degradation, glacial retreat, ocean acidification, sea level rise, and salinization.

ClientEarth v. BlackRock - complaint

Target

Policy instrument

Risk

Impacted group

Just transition

Renewable energy

Fossil fuel

Greenhouse gas

Economic sector

Adaptation/resilience

Finance