ESG & Investing

BlackRock Reclassifies $26 Billion of ESG ETFs on EU Rules

The decision follows updated guidance around Article 9 funds
Pimco, Goldman also affected as ESG reclassifications spread

French police monitor employees re-entering Blackrock offices in Paris after they were evacuated following a climate protest in 2020. New European Union rules aimed at making sure funds touted as ESG are fulfilling their stated aims with 100% sustainable assets are causing many to be reclassified. — French police monitor employees re-entering Blackrock offices in Paris after they were evacuated following a climate protest in 2020. New European Union rules aimed at making sure funds touted as ESG are fulfilling their stated aims with 100% sustainable assets are causing many to be reclassified.
Photographer: Christophe Morin/Bloomberg

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By Frances Schwartzkopff

November 11, 2022 at 10:47 AM UTC

Updated on

November 11, 2022 at 3:18 PM UTC

This article is for subscribers only.

BlackRock Inc. is removing Europe’s top ESG designation from a string of exchange-traded funds, after the EU provided updated guidelines to the asset management industry.

The so-called Article 9 classification will be stripped from 17 ETFs, BlackRock said Friday. The funds had $26 billion of combined assets under management at the end of September, the firm said.