PARIS (Reuters) – The British environmental NGO ClientEarth said on Thursday that it had sent a report targeting asset manager BlackRock to the Financial Markets Authority (AMF) for a practice of “greenwashing” concerning the naming of investment funds “sustainable”.

“Greenwashing” consists of an organization making misleading statements about sustainable development to investors or consumers.

ClientEarth says it asked the French financial regulator on Wednesday to investigate BlackRock for allegations of deceiving investors after a report from the NGO Reclaim Finance revealed in March that passive funds sold as “sustainable” were investing in companies in the fossil sector.

“In our report, we assert that it is misleading and a violation of European Union directives and regulations to label funds that invest in companies that develop fossil fuels as ‘sustainable,’ or that are not aligned with the Paris Agreement temperature goals,” ClientEarth said in a statement.

The report consulted by Reuters specifies that two so-called “Article 9” funds and 16 so-called “Article 8” funds under the European SFDR regulation managed by BlackRock present “a risk of greenwashing”.

Still according to the document, these 18 funds are marketed in France with the label “sustainable” while being exposed to more than a billion dollars in fossil fuels through companies like ExxonMobil, Shell, TotalEnergies, Chevron or BP.

“BlackRock’s funds are managed in accordance with their investment objectives, which are clearly stated in each fund’s prospectus and on the BlackRock website,” BlackRock responded in a statement sent to Reuters.

“BlackRock’s sustainable funds are managed in accordance with applicable sustainable investment regulations,” added the global asset management giant.

When contacted, the AMF clarified that it would not comment on individual files.

(Written by Bertrand De Meyer, edited by Blandine Hénault and Sophie Louet)

Copyright © 2024 Thomson Reuters