U.S. finance CEOs challenged for leaving climate pacts by Democratic lawmakers
By Simon Jessop, Nupur Anand, and Saeed Azhar
NEW YORK/LONDON — Democratic legislators strongly condemned the CEOs of major financial firms like BlackRock and JPMorgan for withdrawing from various international groups focused on tackling climate change. They urged these leaders to maintain their earlier pledges and policy objectives aimed at decreasing greenhouse gas emissions.
In light of increasing severe weather occurrences and escalating economic threats, congressional members stated in a letter viewed by them that these leaders have “voluntarily chosen not to take charge in addressing climate change.” This missive, dispatched on Thursday, additionally requests documentation of their exchanges with the Trump administration concerning potential reductions in efforts related to environmental protection and societal issues.
“We are disappointed that your organization appears to be disregarding science and what’s good for business, and instead yielding to political pressure for short-term political favor,” it said.
The CEOs of Morgan Stanley, Citigroup, Bank of America, Wells Fargo, Goldman Sachs, Northern Trust, Franklin Templeton, State Street, Invesco, and Pimco—which is part of insurer Allianz—also got this letter. It was spearheaded by California Representative Maxine Waters, who is the top Democrat on the House Financial Services Committee, along with Illinois Representative Sean Casten.
Pimco, Wells Fargo, Bank of America, Goldman Sachs, Citi, State Street, and JPMorgan chose not to comment. Franklin Templeton did not respond promptly, and the remaining firms also failed to provide immediate feedback.
Each institution left either the Net Zero Banking Alliance, the Net Zero Asset Managers Initiative or Climate Action 100+, members of which had either committed to cutting emissions linked to the institution’s activities or to engaging with investee companies over climate.
When they left the groups, most of the institutions said they still pledged to reduce emissions but made no reference to the political pressure from some Republican politicians, who accused the companies of unfairly seeking to limit financing to the fossil fuel industry.
Emissions generated by industries through the combustion of coal, natural gas, and petroleum products stand as the primary contributors to anthropogenic climate change. Nations have committed themselves to decreasing these emissions; however, under President Donald Trump’s leadership, the United States has withdrawn from this agreement.
As well as asking the CEOs to explain their decision to leave the groups, the letter asked them to confirm their intention to achieve their previously stated emissions-reduction goals and explain how they intended to do it.
The letter also asked whether they would continue publishing their progress or explain why not; to detail existing targets and policies to cut emissions in line with the Paris Agreement on climate; and to commit not to weaken them.
For the banks specifically, it asked them whether they still intend to set targets and policies on so-called “facilitated” greenhouse gas emissions, such as those linked to companies issuing bonds a bank underwrites. The letter also asked whether the banks would stick with the same timetable for emission reduction goals.
And for all the companies, it asked them to detail communications with the Trump administration regarding cutting environmental, social and governance activities since Jan. 20, including any directives to freeze funds for climate-related federal programmes such as the Greenhouse Gas Reduction Fund.
(Simon Jessop reported from London, and Nupur Anand and Saeed Azar reported from New York; editing by Aurora Ellis)