Kentucky Warns Banks Against Boycotting Oil And Gas | OilPrice.com

Virtually a dozen banks and asset managers have obtained a warning from the state of Kentucky that it may divest from them in the event that they proceed to boycott the oil and gasoline business.

Kentucky State Treasurer Allison Ball stated in a press launch that “When corporations boycott fossil fuels, they deliberately choke off the lifeblood of capital to Kentucky’s signature industries.”

“Conventional power sources gasoline our Kentucky financial system, present a lot wanted jobs, and heat our houses. Kentucky should not enable our signature industries to be irreparably broken based mostly upon the ideological whims of a choose few.”

Reuters reported that the Treasury has requested all state businesses to inform it of their holdings, each direct and oblique, within the 11 banks and monetary companies corporations with a view to divesting from them in case the corporate boycotts the oil and gasoline business.

In accordance with the report, JP Morgan, Citi, and BlackRock are among the many corporations focused by the Kentucky Treasury.

A number of U.S. states have focused monetary companies majors for his or her ESG agenda which has successfully put them on a collision course with the oil and gasoline business. Texas was the primary to threaten the monetary business to tug out its cash if it continues shunning oil and gasoline.

“The environmental, social and company governance (ESG) motion has produced an opaque and perverse system by which some monetary corporations now not make selections in one of the best curiosity of their shareholders or their shoppers, however as an alternative use their monetary clout to push a social and political agenda shrouded in secrecy,” the state comptroller, Glenn Hegar stated in August.

A number of extra states adopted, prompting banks to disclaim any boycott of the fossil gasoline business whilst they had been being pressured by activist shareholders and NGOs to make ever extra bold net-zero commitments, together with by means of the divestment and refusal of finance for the oil and gasoline business.

By Irina Slav for Oilprice.com

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