Arizona Attorney General Kris Mayes announced that the state wouldn’t participate in further investigations of United States banks and financial institutions that engage in environmental, social, and corporate governance (ESG) lending and investment practices.
In a Feb. 13 statement, Mayes, a Democrat, accused her Republican predecessor Mark Brnovich of launching “politicized investigations” into the environmental sustainability policies of major financial banks and lending institutions.
“While my predecessor’s administration spent time and resources launching politicized investigations into the environmental sustainability efforts of major financial institutions, my administration is committed to using the tools and resources at our disposal to protect and secure the rights of Arizonans on matters that affect their daily lives,” Mayes said in one of her first major decisions since taking office in January.
“Arizonans can expect my office to be laser-focused on issues like protecting Arizona’s natural resources—including water, combatting fraud and scams, and safeguarding vulnerable groups like seniors and children.”
She said she believes that government shouldn’t get involved in the activities of corporations and customers regarding investment decisions in green technologies and practices or efforts to “improve their governance processes.”
“Corporations should be permitted to access capital markets in ways that they feel are necessary for the advancement of their investor objectives and for society, as long as they are doing so in a lawful manner,” Mayes said.
“Corporations increasingly realize that investing in sustainability is both good for our country, our environment, and public health and good for their bottom lines.
“The state of Arizona is not going to stand in the way of corporations’ efforts to move in the right direction.”
Brnovich had argued while in office that lending companies that engage in ESG practices were putting climate change politics ahead of their customers.
Six Major Banks
The banks were Citigroup, Bank of America, Goldman Sachs, JPMorgan Chase, Morgan Stanley, and Wells Fargo.“American banks should never put political agendas ahead of the secure retirement of their clients,” Brnovich said in the Oct. 19, 2022, letter.
“These financial institutions are entrusted with protecting a different type of green.”
In their lending and investment portfolios, these companies include a set of carbon emissions reduction targets to reach net zero by 2050 in alignment with the U.N. Net-Zero Banking Alliance (NZBA) climate change initiative, according to Brnovich.
“NZBA is an agreement between major banking institutions to support the climate agenda by choosing not to work with companies engaged in fossil fuel-related activities,” he said.
“This means some farmers, oil leasing companies, and other businesses will be unable to get a loan because of the alliance. The states want the banks to identify global climate initiatives they are affiliated with and explain why.”
Brnovich said in a Nov. 17, 2021, statement, “My office is committed to fair business practices and competition. We will take action to ensure companies are not operating in the shadows to move a political or woke agenda.”
Bank of America and Citigroup didn’t respond to requests by The Epoch Times for comment.
