Major U.S. Banks Exit UN Climate Alliance: A Win for Freedom and the Economy

The recent announcement of multiple major U.S. banks and financial institutions leaving the Climate Action 100+ investor group at the United Nations has been hailed as a victory for freedom, the economy, and investors. The decision was made based on the banks’ fiduciary responsibility to their investors and the belief that investment decisions should be based on common business sense rather than left-wing politics.

The Climate Action 100+ was established in December 2017 as a way of aligning the world’s largest private sector financiers of greenhouse gas emitters. The alliance has grown to include over 700 financial institutions that are collectively responsible for a staggering $68 trillion in assets under management. The group’s main objective is to engage companies on improving climate change governance, curbing carbon emissions, and strengthening climate-related financial disclosure policies.

However, the alliance’s “phase 2” strategy, which calls for member investors to actively engage with companies to reduce their carbon footprint, sparked concerns from State Street and BlackRock. Both financial institutions withdrew from the alliance, with State Street citing inconsistency with its independent approach to proxy voting and portfolio company engagement. BlackRock similarly stated that the new strategy would raise legal considerations, particularly in the U.S.

JPMorgan Chase, the world’s largest bank, also announced its departure from the alliance, attributing its decision to the expansion of its own in-house sustainability team and the establishment of its climate-risk framework in recent years.

The exit of these major banks from the Climate Action 100+ has been welcomed by House Judiciary Chair Jim Jordan, who has been leading an investigation into the financial sector and nonprofit climate groups over their coordination on net-zero ambitions. Jordan’s committee has issued subpoenas to BlackRock and State Street, compelling the production of documents related to potential antitrust violations.

The departure of these banks from the alliance has also been criticized by Republican states, which argue that the alliance’s activities may infringe on government policymaking and harm domestic energy companies that employ thousands of Americans and ensure low consumer prices.

The Climate Action 100+ has faced criticism from various quarters, with some arguing that it is a threat to economies and freedoms. The alliance’s actions have largely taken aim at investments that benefit the oil and gas industry while boosting green energy investment strategies. However, the alliance’s expansion of its “phase 2” strategy has raised concerns among some financial institutions, leading to their departure from the group.

The exit of these major banks from the Climate Action 100+ is a win for America, the economy, and investors. It is a victory for common business sense and the fiduciary responsibility of financial institutions to their investors. It is a win for freedom and the market principles of capitalism. The decision to leave the alliance is a sign that the grift is over, and the American public has been milked dry. It is a reminder that investment decisions should be based on sound business principles and not on politics.

In conclusion, the recent announcement of major U.S. banks and financial institutions leaving the Climate Action 100+ investor group at the United Nations is a win for freedom, the economy, and investors. It is a victory for common business sense and the fiduciary responsibility of financial institutions to their investors. It is a reminder that investment decisions should be based on sound business principles and not on politics. The departure of these banks from the alliance is a sign that the grift is over, and the American public has been milked dry. It is a victory for the market principles of capitalism and a reminder that the United States is the engine of the global economy.