Texas will help financial companies circumvent sanctions
2022.12.05 15:18
Texas will help financial companies circumvent sanctions
Budrigannews.com – Attorneys were skeptic when a Texas official offered large financial institutions a way to get off an energy sanctions list if they left corporate groups aiming to reduce global emissions.
The idea is explained in detail on the website of Texas Comptroller Glenn Hegar, who put BlackRock Inc. (NYSE:) on the market in August.and nine European banks as “boycotting” the energy industry because of their environmental policies, according to a new state law.
The listings are part of broader Republican pressure against the growing use of environmental, social, and governance (ESG) factors in investing and may result in lost business with state agencies.
A document on Hegar’s website that was updated on November 18 states that the “boycott” designation may still legally apply even if companies own oil or coal stocks.
Additionally, new information about how businesses can be removed from the list is included in the update.
It presently expresses “a substance that is not generally remembered for the Environment Activity 100+ and Net Zero Financial Partnership/Net Zero Resource Chiefs Drive would at this point not meet the underlying standards for posting”.
The goal of the Climate Action 100+ investor network is to get companies that produce a lot of emissions to clean up their operations.
Members of the Net Zero groups, which are a part of a global finance effort to cut emissions and are led by U.N. climate envoy Mark Carney, promise to cut greenhouse gas emissions that are tied to how they get their money. Antitrust concerns are raised, according to critics, by excessive coordination.
BlackRock and other companies have stated that they intend to leave the list, and Hegar has previously stated that he would consider making changes to it. Hegar representatives declined to discuss specific company statuses.BlackRock did not respond immediately.
The new language appears to offer an exit from the boycott list in exchange for withdrawal from the industry groups, according to Ropes & Gray attorney Josh Lichtenstein, who represents asset managers that have met with Hegar regarding the issue.
Lichtenstein stated, “However, given how seriously many of their investors take climate concerns, it would be difficult for the majority of big firms to drop out.”He stated, “My gut tells me it’s unlikely.”
According to Mindy Lubber, chief executive officer of the sustainability non-profit Ceres and an organizer of targeted groups in Texas, she agreed that businesses are unlikely to withdraw because investors are increasingly pressing them to control the impact of climate change on portfolios.
