Wednesday, July 24, 2024
Home Investment NewsInvestment Strategies Nonprofits Target U Based Bank’s ESG Investment Strategy

Nonprofits Target U Based Bank’s ESG Investment Strategy

by xyonent
0 comment
Woke Head Cyber Small 0.jpg


Consumers Research, a nonprofit that challenges “companies that choose to put politics above the interests of consumers,” In June 2023, Bank of America announced it would launch a public relations campaign against U.S.-based global financial institutions. The organization said Bank of America pursues an “ideologically driven agenda” and advocates for “ESG fanaticism.” In a statement in support of the campaign, which includes national television ads, billboards in major U.S. cities including New York City’s Times Square, and a dummy “Bank of America” ​​website, Consumers Research CEO Will Hild accused Bank of America of using its access to capital to push a progressive political agenda. According to Hild, Consumers Research has identified Bank of America and its CEO as one of the most outspoken lenders on climate-related topics as well as other issues that some lump under the ESG umbrella, such as gun control, LGBTQ+ rights, and abortion and reproductive health protections. Hild also took issue with other measures the bank has taken, such as greenhouse gas emissions calculations for customers and internal diversity, equality, and inclusion training.

The campaign against Bank of America is the latest in the group’s broader “consumer first” initiative, which focuses on companies’ ESG policies. For example, the group has targeted BlackRock Inc. We reported The company also received a letter from 19 Republican state attorneys general earlier this year criticizing its ESG stance.BlackRock has defended its ESG policies, saying climate risk and the economic opportunities from the energy transition are top concerns for many of its clients and that its participation in ESG initiatives is “fully consistent with our fiduciary duties.”

Bank of America said in a statement that its focus on “responsible growth” [it] deliver[s] Industry-leading services [its] Deliver great benefits to 68 million American consumers, be a great place to work for our employees, and support communities across the country [its] The firm will add resources to its Sustainable Banking Solutions group in 2022 to advise clients on ESG issues that impact financing requirements, valuations and strategic decisions as they navigate the transition to net-zero greenhouse gas emissions. 2022 Annual ReportBank of America’s Global Corporate and Investment Banking (GCIB) business has become number one in the world for ESG bond issuance.

Taking the Temperature: The U.S. political divide over ESG issues shows no signs of abating. Republican-led state legislatures have taken up efforts to impose a range of penalties on financial institutions deemed insufficiently supportive of the energy industry. On March 30, 2023, 21 Republican state attorneys general (AGs) filed a motion to impose penalties on financial institutions deemed insufficiently supportive of the energy industry. I wrote a letter The letter, addressed to more than 50 U.S. asset managers, cited “concerns about continuing agreements among asset managers to use Americans’ savings for political purposes during the upcoming proxy season.” [their] “State civil laws prohibiting unfair and deceptive acts and practices, and State and Federal civil laws prohibiting agreements to restrict competition.”

BlackRock in particular has been a focus of these efforts, with some state officials pulling state funds that the company managed. While it is difficult to gauge whether these efforts are working, it has been observed that while BlackRock increased its assets under management by $230 billion last year, it lost about $4 billion in AUM as a result of state government responses to ESG issues. Meanwhile, some commentators have argued that BlackRock’s support for ESG shareholder initiatives has declined over the past year or two, and just days ago it appointed the CEO of Saudi Aramco, the world’s largest oil producer, to its board of directors. In the insurance industry, 23 Republican state attorneys general wrote a letter to members of the Net Zero Insurance Coalition in May 2023 expressing “serious concerns” about whether the NZIA requirements comply with state and federal law. In response to these concerns, several insurers have withdrawn from the industry group.

U.S. financial institutions will need to balance these anti-ESG challenges with calls for further action to advance net-zero targets and ensure financial resilience to climate-related risks. European regulators and other countries are requiring banks to undergo climate-risk stress tests as part of their climate risk assessments, while investors are pressuring banks in the United States and other countries to stop or reduce lending to fossil fuel projects.



Source link

You may also like

Leave a Comment

About Us

Investxyon

At InvestXyon, we empower individuals with knowledge for informed investing, financial navigation, and secure futures. Our trusted platform covers investments, stocks, personal finance, retirement, and more.

Feature Posts

Newsletter

Subscribe my Newsletter for new blog posts, tips & new photos. Let's stay updated!