Louisiana Treasurer takes aim at Bank of America, but others have similar ESG policies

In rejecting Bank of America, Fleming aligned himself with other state finance officials from the State Financial Officers Foundation, a right-leaning organization that casts ESG policies as a tool used to aid progressive politics.   

In an April 2024 letter, Fleming and 14 other SFOF members said the financial institution “had a track record of de-banking religious organizations” and that its “Net-Zero Banking Alliance commitments will also lead to de-banking.”

The Net-Zero Banking Alliance is a coalition of banks that have pledged to align their lending and investments with net-zero emissions goals to limit global temperature increases. 

In a May response, Bank of America said that “religious beliefs or political view-based beliefs are never a factor in any decisions related to our client’s accounts.”

Other fiscal agents 

Fleming last week did not mention JPMorgan Chase, which is also a member of the Net-Zero Banking Alliance. 

Nor did he mention US Bank, which in a 2023 report said it intends to “partner with our clients on their transition to a lower carbon economy” and called itself “one of the most active renewable energy investors in the nation.” 

Bank of New York Mellon also considers climate in its investments, and Capital One and Hancock Whitney have taken steps in that direction. 

Regions Bank and Cadence Bank have taken steps to reduce their own greenhouse gas emissions.

Fleming said any decisions about state fiscal agents are up to the IEB. But he defended his recommendation to reject Bank of America as a way to push back against policies he deems harmful to Louisiana. The IEB has not scheduled a vote on Bank of America’s application. 

“As we create counter pressure, what we’re finding is (banks) are beginning to back away from some of these things,” Fleming said, though he did not point to specific examples.

Meanwhile, Moller said he commends public companies that consider problems associated with climate change. Because Louisiana is particularly susceptible to the negative impacts of climate change, “if anything, we should be trying to do more business with companies that take this threat seriously,” he said. 

The Associated Press contributed to this report.