Six West Virginia Banks Face Ban Over Alleged Fossil Fuel Boycotts Amid Broader GOP Opposition to ESG Practices
West Virginia has warned six banks they might be blocked from state contracts.
West Virginia has warned six banks they might be blocked from state contracts.
This is because they're thought to be part of "boycotts" against fossil fuel companies. State Treasurer Riley Moore told the banks they could end up on a restricted list. They can avoid this if they show they're not boycotting these companies. The banks involved are Citibank, TD Bank, BMO Bank, Fifth Third Bank, Northern Trust, and HSBC Holdings.
Five other companies are already on the state's list. These are BlackRock, Goldman Sachs, JPMorgan Chase, Morgan Stanley, and Wells Fargo. These companies no longer have access to roughly $18 billion. The six new banks have 45 days to defend themselves to avoid being added.
The action by West Virginia is part of a larger effort by Republicans. They are fighting against practices related to the environment, society, and governance (ESG). ESG is about focusing on goals linked to the environment, society, and good governance. Supporters argue ESG can bring positive changes to society. Critics say it harms the economy and culture.
West Virginia isn't the only state taking action against ESG. Other Republican-led states have also acted. Some have pulled out or plan to pull out a lot of money from BlackRock. The CEO of BlackRock is Larry Fink. The pushback from the GOP has affected BlackRock. Their annual report showed they only supported 7% of almost 400 proposals about the environment and society.
In his yearly letter, Fink didn't mention ESG. He also put less focus on climate issues. This shows a change in attitude as Republican criticism increases. West Virginia's actions against the banks is part of a larger debate. It's about ESG and how it affects different industries and sectors.
