West Virginia will no longer enter into contracts with four major financial institutions. reportedly They “boycotted” companies connected to the fossil fuel industry, a pillar of West Virginia’s economy.
On Monday, Republican state Treasurer Riley Moore, now run for parliamentannounced that the following banking institutions have been added to the state’s financial institutions list. List of regulated financial institutions: Citigroup Inc.; TD Bank NA; Northern Trust Company. and HSBC Holdings PLC.
The restricted list also includes BlackRock, Goldman Sachs Group, JPMorgan Chase, Morgan Stanley, and Wells Fargo, all of whom Senate Bill 262the law establishing the list came into force in July 2022.
According to the law, financial institutions added to the restricted list are committed to boycotting companies that produce and process fossil fuels. The law defines “boycott” as refusing to do business with such energy companies without a “reasonable business purpose.”
The list aims to prevent banks and states from collaborating against the interests of the state. “We cannot allow an agency that seeks to destroy our state’s vital energy industry and the economic activity it generates to profit from handling the very taxpayer dollars it seeks to reduce,” Moore explained. .
“We are absolutely going to support the fossil fuel industry,” Moore added in an interview. fox business.
Earlier this year, Moore’s office sent a letter to six financial institutions stating that their ESG (environmental, social and governance) policies put them on the list and disqualified them from tens of billions of dollars in state contracts. warned that there was a possibility of Last year, West Virginia spent $22 billion on banking transactions.
However, two of the financial institutions that received the letters, BMO Bank and Fifth Third Bancorp, indicated that they did not intend to boycott such companies after all. “I applaud both agencies for working together to maintain free market freedoms and ensure fair treatment for our state’s critical industries,” Moore said.
At least two of the four financial institutions currently on the banned list have denied boycotting fossil fuel companies.
“We aim to work with energy companies, not boycott,” an HSBC representative said. “Our policy is to provide corporate financing and capital market transaction support to our energy-based customers to support an orderly and just transition that not only preserves supply but also helps create new jobs. “We stand by our energy companies.” We’re pleased to have customers across the United States. ”
A Northern Trust spokesperson insisted: “We do not restrict or prohibit investment in fossil fuel-based energy companies.” The spokesperson also said Northern Trust has a $52 billion investment in what Fox Business calls “traditional energy and services provided to manage oil, gas, and other fossil fuels for customers.” He also mentioned that it offers investment exposure.
Citigroup and TD Bank did not immediately respond to the media’s requests for comment.
But Moore stood by his decision to add all four to the list, saying, “My actions today are politically motivated to cut off funding to the coal, oil, and natural gas industries. “This represents our continued commitment to protecting national funds from the pursuit of subjective ESG policies.” And it harms our nation. ”
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