ESG
In certain areas of political discourse , Environmental , Social and Governance is interchangeable with the label ‘ woke capitalism ’. The pushback against “ the ESG movement ” has included West Virginia in the US blocking its use in all investment decisions and banning state fund managers from considering ESG factors in their investments on behalf of the state .
HSBC , Citi , Northern Trust and TD Bank are the latest global institutions to be barred from providing banking services to the state , joining BlackRock , Goldman Sachs , JPMorgan Chase , Morgan Stanley and Wells Fargo on its Restricted Financial Institution List .
West Virginia Treasurer Riley Moore says they are engaged in “ boycotts ” of fossil fuel companies – a sentiment that is in tune with a wider movement by Republican politicians in the US , designed to “ protect individuals from the ESG movement ”.
Moore said : “ We cannot allow institutions that seek to destroy our state ’ s critical energy industries and the economic activity they generate to also profit from handling the very taxpayer dollars they seek to diminish .”
The banks seem bemused by the decision .
A Citi spokesperson said : “ Citi is not engaged in a boycott of energy companies as evidenced by the fact that we continue to lend to these companies and have substantial credit exposure to the industry . sustainabilitymag . com 63