Bank of America, Citigroup, Goldman Sachs, JP Morgan Chase, Morgan Stanley, and Wells Fargo are under investigation by Missouri Attorney General Eric Schmitt and 18 other state attorneys general.
The banks have been served subpoenas that demand documents relating to their involvement with the United Nations (UN) Net-Zero Banking Alliance, which requires member banks to establish emissions reduction targets in their lending and investment portfolios to reach net zero by 2050.
“The Net-Zero Banking Alliance is a massive worldwide agreement by major banking institutions, overseen by the U.N., to starve companies engaged in fossil fuel-related activities of credit on national and international markets,” Schmitt said in a statement online. “Missouri farmers, oil leasing companies, and other businesses that are vital to Missouri’s and America’s economy will be unable to get a loan because of this alliance.”
Arizona, Kentucky, and Texas have joined Missouri in leading the inquest.
“We are leading a coalition investigating banks for ceding authority to the U.N., which will only result in the killing of American companies that don’t subscribe to the woke, climate agenda,” Schmitt added. “These banks are accountable to American laws - we don’t let international bodies set the standards for our businesses.”
Other states involved include Arkansas, Indiana, Kansas, Louisiana, Mississippi, Montana, Nebraska, Oklahoma, Tennessee, and Virginia.
Net-Zero banking and climate change initiatives require significant amounts of capital, according to Carl Riccadonna, a chief U.S. economist at BNP Paribas bank.
"If we're moving to a different energy supply, instead of just piping in natural gas, we have to invest in the infrastructure needed for nuclear, solar, and wind energy," Riccadonna told the St. Louis Record. "Some of the money will come from governments and some of it comes from the private sector, and that will have to be a combination of the two going forward."
The interrogatories within the subpoenas ask each of the six banks the extent to which they have incorporated the "Principles for Responsible Banking" into their operations, including but not limited to the extent to which they consulted with Net-Zero Banking Alliance signatories as part of the incorporation process.
Other questions include "Describe Your CEO’s involvement as a member of the Glasgow Financial Alliance for Net Zero Principals Group, including but not limited to the dates, times, and locations of all Principals Group meetings, and any commitments, pledges, or other promises made by Your CEO, either for himself or on Your behalf, as part of his membership in the Principals Group."
Schmitt’s investigation arrives just days after Missouri State Treasurer Scott Fitzpatrick said he would withdraw $500 million in pension funds from international asset manager BlackRock’s portfolio because of its alleged anti-fossil fuel investment strategy.
In managing some $10 trillion in assets, BlackRock allegedly imposes environmental, social, and governance (ESG) guidelines on the boards of directors of its holdings, which include Microsoft, Amazon, Google, and Apple.
“It is past time that all investors recognize the massive fiduciary breach that is taking place before our eyes, and do something about it,” Fitzpatrick said. “As Treasurer and as a member of the Missouri State Employees Retirement System (MOSERS) Board, I will continue fighting for Missourians to stop their tax dollars from being weaponized against them.”
In a statement online, BlackRock said it does not boycott the energy industry:
"BlackRock has been accused of “boycotting” energy companies. Quite the opposite: BlackRock’s clients are some of the largest investors in the energy industry. In the U.S. alone, we have invested $170 billion on behalf of our clients in American energy companies, including pipelines and power generation facilities."