Red States Fighting ‘Woke’ Banks That Push Anti-Fossil Fuel Policies

Red States Fighting ‘Woke’ Banks That Push Anti-Fossil Fuel Policies
A sign outside the headquarters of JP Morgan Chase & Co. in New York City, on Sept. 19, 2013. (Mike Segar/Reuters)

Republican states are fighting efforts by certain banks to push environmental, social, and governance (ESG) standards that promote, among other progressive agenda, anti-fossil fuel policies.

Over the past year, at least 15 Republican-led states have proposed policies or laws that would punish banks for taking an anti-fossil fuel stance. State financial officers from Texas, Arkansas, Utah, Florida, Kentucky, North Dakota, Arizona, Idaho, Louisiana, and South Carolina are taking or considering taking actions against banks boycotting energy firms, according to FOX Business. Texas, Kentucky, and Oklahoma are already compiling lists of banks with such policies.

A spokesperson for Kentucky State Treasurer Allison Ball, when speaking to Fox Business, pointed out that fossil fuel industries are “economically integral” to the state.

“They provide jobs for Kentuckians, fuel communities and the supply chain, and keep the lights on. We want to support these signature industries,” the spokesperson said. “We hope we have sent the message that if you won’t do business with Kentucky, we won’t do business with you.”

West Virginia recently announced that it will block five financial institutions from entering into banking contracts with state agencies after these entities pushed policies against the fossil fuel industry. The sanctioned institutions include JP Morgan, Goldman Sachs, and BlackRock.

Coal, natural gas, and oil industries are critical to West Virginia. In fiscal 2022, for example, the state collected nearly $800 million through taxes from these industries, far more than the $300 collected during the previous fiscal.

“We felt like we had a clear conflict of interest,” West Virginia Treasurer Riley Moore said during a June 8 press conference. “We produce coal, gas, and oil, and this ESG movement in its current form is really an existential threat to our jobs, our economy, and our tax revenue.”

Countering ESG

According to Utah State Treasurer Marlo Oaks, investment managers and banks that act against fossil fuel firms are implementing economic sanctions.

“We need more capital going into oil and gas production, and there are great opportunities there to make money. Why isn’t the money going there? Why aren’t capital markets working, like they have in the past? It’s because of ESG,” he said.

The new policies being adopted by Republican states against entities that act against fossil fuel interests will negatively affect the cash flows of such businesses. For instance, in 2021, Texas passed a law banning doing business with firms that “boycott” energy companies.

As a result, Texas has sidelined JP Morgan, Bank of America, and Goldman Sachs from the municipal bond market this year. JP Morgan had underwritten $3.2 billion worth of Texas municipal bonds in 2021. So far this year, the bank has only underwritten $210 million.

Source: The Epoch Times.

About Stu Turley 3566 Articles
Stuart Turley is President and CEO of Sandstone Group, a top energy data, and finance consultancy working with companies all throughout the energy value chain. Sandstone helps both small and large-cap energy companies to develop customized applications and manage data workflows/integration throughout the entire business. With experience implementing enterprise networks, supercomputers, and cellular tower solutions, Sandstone has become a trusted source and advisor.   He is also the Executive Publisher of, the best source for 24/7 energy news coverage, and is the Co-Host of the energy news video and Podcast Energy News Beat. Energy should be used to elevate humanity out of poverty. Let's use all forms of energy with the least impact on the environment while being sustainable without printing money. Stu is also a co-host on the 3 Podcasters Walk into A Bar podcast with David Blackmon, and Rey Trevino. Stuart is guided by over 30 years of business management experience, having successfully built and help sell multiple small and medium businesses while consulting for numerous Fortune 500 companies. He holds a B.A in Business Administration from Oklahoma State and an MBA from Oklahoma City University.