Shortly before President Donald Trump was inaugurated in January, the Net Zero Asset Managers (NZAM) initiative announced it was suspending its activities. The announcement came after the investment firm Blackrock said it was withdrawing, joining an exodus of firms from the group. That month, six of the largest U.S. banks also left a similar group for banks, the Net-Zero Banking Alliance (NZBA).
Critics had called NZAM and NZBA “cartels,” and firms were facing Congressional investigations and lawsuits, arguing their activities violated anti-trust laws. By coordinating an effort to harm politically unfavored companies, the lawsuits argued, they were engaging in illegal collusion, accusations the firms say are baseless.
However, with litigation risks mounting, the firms fled NZAM and NZAB. Blackrock, the world’s largest asset management company with $11.6 trillion in assets under management, said in a statement that its “memberships in some of these organizations have caused confusion regarding BlackRock’s practices and subjected us to legal inquiries from various public officials.”
Not really the end of ESG
The environment, social and governance (ESG) sustainable investing movement recently appeared to be nearing its end. However, that may not be the case, at least for some companies. The American Energy Institute (AEI), which defends the production of petroleum as a means of reliable and affordable energy, was recently notified its insurance wouldn’t be renewed.
According to AEI, the Hartford Underwriters Insurance Company reportedly stated the reason for the non-renewal was that the group’s Facebook page indicated that their operations “include trade associations involved in promoting social/political causes related to energy production. This is not an acceptable exposure under the Hartford Small Commercial business segment’s guidelines.”
“They’re really not changing their behaviors whatsoever. They’re just dropping some alliances and probably saving a few bucks on dues,” Jason Isaac, executive director of the AEI told Just the News.
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The Hartford didn’t respond to Just the News‘ questions about its decision not to renew AEI’s insurance or what policies the AEI was violating.
Will Hild, executive director of Consumers’ Research, testified before the Texas Senate Committee on State Affairs last month in a hearing considering anti-ESG legislation. Hild argued that even though banks have left net-zero alliances, they continue to advance policies aimed at getting companies to reduce their emissions.
Hellbound and Down 