19-State Coalition Launching an Investigation into Six Major Banks Over Ties to UN Net-Zero Banking Alliance

Missouri Attorney General Eric Schmitt announced today that his office and 18 other attorneys general served six major American banks with civil investigative demands. These demands act as a subpoena and seek documents relating to the banks’ involvement with the United Nations Net-Zero Banking Alliance (NZBA), which is part of a trend toward environmental, social, and governance (ESG) investing. Missouri, Arizona, Kentucky, and Texas are leading the investigation,

The banks served with demands include Bank of America, Citigroup, Goldman Sachs, JPMorgan, Morgan Stanley, and Wells Fargo. NZBA-member banks must set emissions reduction targets in their lending and investment portfolios to reach net zero by 2050. According to the NZBA’s governance document:

In addition to net-zero by 2050 commitments, banks must set targets for 2030 or sooner which are in line with a low/no overshoot scenario consistent with 1.5 degree warming to cover a significant majority of emissions including in at least one priority sector within 18 months of joining and set targets for all or a substantial majority of listed high emitting sectors within 36 months of signing and  annually report on targets and progress.

Bank of America, Citigroup, and  Morgan Stanley are currently listed as members of the 12-member Steering Group for the NZBA. Another member of the Steering Group not included in the investigation is Amalgamated Bank. This financial institution is rooted in the U.S. labor movement with strong ties to the SEIU, the United Federation of Teachers (UFT), and the American Federation of State, County, and Municipal Employees (AFSCME). Amalgamated calls itself “America’s socially responsible bank” and was instrumental in pushing Visa and Mastercard to add the transaction code for firearms and ammunition purchases.

Related: BlackRock Gets Downgraded for the Increasing Political Risk of ESG Investing

“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. 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,” said Attorney General Schmitt. “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. These banks are accountable to American laws — we don’t let international bodies set the standards for our businesses.”

The interrogatories in the civil investigative demands are extensive and detailed. They seek to identify the specific commitments the banks made to Global Climate Initiatives, who decided to make them, and details of the staff’s participation in meetings related to the NZBA.  Missouri, Arizona, Arkansas, Indiana, Kansas, Kentucky, Louisiana, Mississippi, Montana, Nebraska, Oklahoma, Tennessee, Texas, and Virginia have joined the investigation into the six banks. Five additional states can’t be named due to state laws or regulations regarding confidentiality.

“With today’s action led by Missouri Attorney General Schmitt, states are holding big banks accountable for obvious violations and for peddling highly questionable climate initiatives under the label of ESG — all part of a coordinated effort to handicap American energy at the expense of U.S. consumers,” said Wil Hild, executive director of Consumers’ Research. “These banks cannot be allowed to continue to promote a progressive agenda that prioritizes political activism over delivering for their hardworking American customers. Consumers’ Research applauds these Attorneys General for taking action and making a real difference at a time when Americans need it most,” he added.

This investigation is the latest in a series of actions aimed at ESG investing by attorneys general from across the country. Indiana AG Todd Rokita issued an official opinion in early September stating that Indiana may not base its pension investment strategies on ESG guidelines. In August, 19 states joined a letter, led by Arizona AG Mark Brnovich, calling out BlackRock for putting politics above investor returns. Missouri AG Eric Schmitt launched an investigation into Morningstar over ESG practices and anti-Isreal bias. Kentucky AG Daniel Cameron issued an opinion in May that ESG investing is inconsistent with Kentucky law.

The new investigation also follows actions by several state treasurers removing investment funds and banking transactions from companies engaged in ESG investing. Earlier this week, Missouri State Treasurer Scott Fitzpatrick announced that the Missouri State Employees Retirement System (MOSERS) pulled $500 million in pension funds managed by BlackRock. Fitzpatrick cited his belief that BlackRock was ignoring its fiduciary responsibility in favor of forcing a political and social agenda through ESG investing. Missouri joined Utah, West Virginia, Arkansas, Louisiana, and South Carolina in withdrawing money from banks and investment firms focused on ESG.