Kentucky Treasurer Sanctions BlackRock and Other Companies Involved in ‘Ideological’ Boycotts of the Energy Sector

Ben ZeisloftJanuary 3, 2023

Kentucky Allison Ball, the State Treasurer, published a listing of financial institutions Currently, the commonwealth is boycotting energy companies and required that they be divested from them.

This is the latest attempt by conservative states to distance themselves form companies involved in the corporate governance, environmental, social and corporate governance movements, also known as ESGConcerns that the approach mixed profits with political and social causes led to their resignation. Ball listed 11 asset management firms and investment banks, BlackRock JPMorgan ChaseAs “Restricted Financial Institutions” In a notice that was seen by The Daily Wire.

“When companies boycott fossil fuels, they intentionally choke off the lifeblood of capital to Kentucky’s signature industries,” Ball stated in a press release. “Traditional energy sources fuel our Kentucky economy, provide much needed jobs, and warm our homes. Kentucky must not allow our signature industries to be irreparably damaged based upon the ideological whims of a select few.”

Ball must be notified within 30 days by all state governments of any holdings in these companies. To avoid divestment, identified companies must stop boycotting energy producers within 90-days. Ball also named Citigroup, Climate First Bank and Danske Bank as well as HSBC Nordea Bank and Schroders.

Ball notifies her more than two months after she has left. authored a letter alongside Kentucky Attorney General Daniel Cameron asking the commonwealth’s public pension systems to advise their offices about “efforts to ensure that ESG considerations are not being implemented in your systems’ investment decisions.”

According to the U.S. Coal Production Index, Kentucky is ranked seventh. data The Department of Energy and low electricity prices have helped to attract manufacturing to the commonwealth. Beverage waste from the state’s distilleries is often used in ethanol production.

Many banks and asset managers have joined alliances that push portfolio companies towards zero carbon emissions. BlackRock is a participant in alliances. “voting action on climate issues” A stewardship agreement was signed against dozens upon dozens of portfolio businesses report Publication two years ago. The company is now a member Climate Action 100+ & similar associations

State officials recently called on the Federal Energy Regulatory Commission to prohibit Vanguard, another prominent asset management company, from purchasing shares in publicly traded utilities out of a concern that the firm’s climate activism will raise prices and decrease energy reliability. Vanguard was later banned. ceased participation Companies are eligible to participate in the Net Zero Asset Managers Initiative. commit To search “net zero greenhouse gas emissions by 2050 or sooner” Investing in funds

Republican state officials pulled BlackRock received approximately $12 billion in BlackRock’s last year, which represents a fraction of the estimated $8 trillion managed as the wider market reacts against the ESG movement. Officials expressed concern that ESG movements could cause difficulties for energy companies looking to raise capital.

“Treasurer Ball takes another bold step today in defense of her state’s financial future by putting banks on notice that boycotts of American energy won’t be tolerated,” State Financial Officers’ Foundation CEO Derek Kreifels remarked in a statement provided to The Daily Wire. “She and other state financial officers across the country are leading the movement to ensure that money earned by hardworking American families is used in accordance with their values, not weaponized against them.”