West Virginia has banned four major financial institutions from entering into state contracts worth tens of billions of dollars over environmental policy.
West Virginia Treasurer Riley Moore has announced that Citigroup, TD Bank, HSBC and Northern, the banks that collectively oversee trillions of dollars worth of assets, are actively working to boycott fossil fuels. Added trust companies to the state’s list of restricted financial institutions. industry.
The action was taken pursuant to a 2022 law passed by the state legislature to counter the sustainable investment movement.
“We are absolutely going to support the fossil fuel industry,” Moore told FOX Business. “Last year, the world burned more coal than in human history. Coal consumption is not going down. That’s a myth propagated by the climate activist left. So why are we in a position where we can’t participate in it? Is it?”
West Virginia Department of Finance
Overall, the West Virginia Department of Treasury’s Investment Banking Services Division managed $22 billion in bank transactions last year.
In addition to existing publicly traded banks, the four financial institutions Moore listed on Monday will be stripped of the opportunity to bid on these deals going forward.
Moore’s office said the banks were added to the list of restricted financial institutions after an extensive review of their environmental, social and governance (ESG) policies.
The ESG movement, which has gained momentum in recent years, is broadly calling for divestment from traditional energy industries and redirecting investments to green energy industries to combat global warming.
Pursuant to state law, Moore issued a notice in late February to Citigroup, TD Bank, HSBC and Northern Trust Company saying they would go public unless they changed their ESG strategies or proved they were not boycotting the fossil fuel industry. I warned you.
Two other banks, BMO Bank and Fifth Third Bank, were also warned at the time, but both banks have since indicated their investment strategies do not include boycotting traditional energy companies.
“I applaud both agencies for working together to maintain free market freedoms and ensure fair treatment for our state’s critical industries,” Moore said.
Moore’s announcement Monday marks a new front in the fight against West Virginia’s ESG movement.
His office previously investigated and compiled a list of banks currently doing business with the state, but recently expanded the scope of its ongoing review of the banking sector, including banks currently authorized to do business with the state. We also included institutions that did not.
The four banks listed join BlackRock, Goldman Sachs, JPMorgan Chase, Morgan Stanley and Wells Fargo, which remain on the list of restricted financial institutions.
Moore published his first list in July 2022, after West Virginia enacted his proposed financial institution list restriction law.
The law authorizes the West Virginia Department of Finance to list financial institutions that have publicly announced that they will refuse, terminate, or restrict business with coal, oil, and natural gas companies “absent a reasonable business purpose.” giving.
But banks already on Moore’s list have pushed back, insisting they are not boycotting the fossil fuel industry.
For example, BlackRock noted in its 2022 response to Moore that it is one of the largest investors in energy companies, with approximately $286 billion of assets invested in these companies worldwide. He pointed out that there was.
“Northern Trust does not restrict or prohibit investments in fossil fuel-based energy companies,” a spokesperson for Northern Trust said in a statement, adding that “Northern Trust does not restrict or prohibit investments in fossil fuel-based energy companies.” It pointed to a $52 billion investment exposure in services provided to manage other fossil fuels. for the client.
An HSBC spokesperson added: “We aim to work with energy companies, not boycott.” “Our policy is to continue 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 support energy companies across the United States and are excited to have them as customers.”
Citigroup and TD Bank did not respond to requests for comment.
“SFOF has emphasized time and time again what a losing proposition ESG investing is,” said Derek, CEO of the State Financial Officers Foundation, a group that brings states together to oppose the ESG movement.・Kreifels said.
“By adding four more banks to the list of restricted financial institutions, West Virginia Treasurer Riley Moore continues to lead the fight against ESG,” Kreifels continued. “I commend Finance Minister Moore for standing up for ESG activities. He has our full support.”
