Author: James McAllister
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Banks exit net-zero alliance
What’s the story? Three major banks announced over the last several days that they are leaving the Net-Zero Banking Alliance. Morgan Stanley, Citigroup, and Bank of America indicated they would exit the group. Why does it matter? The announcements follow similar actions from Goldman Sachs and Wells Fargo last month. They are part of a…
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BlackRock leaves net-zero alliance, NZAM suspends operations
BlackRock—the world’s largest asset manager—announced Jan. 9 that it is leaving the Net-Zero Asset Managers Initiative (NZAM), a United Nations-affiliated group promoting emission reductions. NZAM announced Jan. 13 that it is suspending operations and removing the commitment statement and list of signatories from its website. The group said in a statement it will reevaluate its…
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Indiana pension board removes assets from BlackRock’s management
The Indiana Public Retirement System’s trustees voted last week to stop using BlackRock for asset management services. The board is considering three firms as replacements: State Street, UBS, and Northern Trust. Indiana Treasurer Daniel Elliott (R) argued in August that BlackRock’s ESG commitments made the firm ineligible for contracts under the state’s 2023 anti-ESG law.…
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Trump announces pick for next SEC chairman
President-elect Donald Trump announced last week that he will nominate Paul Atkins as the next Securities and Exchange Commission (SEC) chairman. Atkins’ views on ESG differ from those of current SEC Chairman Gary Gensler. For example, Atkins wrote a letter opposing the SEC’s 2022 proposed climate disclosure rules, arguing they overstepped the agency’s delegated authority.…
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Eleven states sue asset managers, alleging antitrust violations
Eleven Republican-led states on Nov. 27 sued BlackRock, Vanguard, and State Street—the Big Three passive asset managers—arguing the firms violated antitrust laws. The states said the firms’ collective ESG engagement hurt coal production, raising consumer energy costs. The firms argued they operate independently and compete with one another. BlackRock, Vanguard, and State Street hold large…
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SEC chairman announces resignation
SEC Chairman Gary Gensler announced Nov. 21 that he will leave his position effective Jan. 20, 2025, at the end of Joe Biden’s (D) presidency. Trump will name his replacement. Gensler promoted policies supportive of ESG investing as chairman, including a set of rules requiring climate-related corporate disclosures. Most commentators believe Trump’s replacement will likely…
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New York City pension system joins net zero asset group
What’s the story? The New York City Employees’ Retirement System (NYCERS)—under the direction of city Comptroller Brad Lander (D)—joined the Net-Zero Asset Owner Alliance (NZAOA), extending its commitment to ESG investment strategies. NZAOA’s members manage more than $9.5 trillion and commit to using their investments to reduce carbon emissions. Why does it matter? The NYCERS…
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Republicans pick up one state financial officer position
What’s the story? Republicans gained one state financial officer (SFO) position in the Nov. 5 general election, as Dave Boliek (R) defeated incumbent Jessica Holmes (D), and Bob Drach (L) in the race for North Carolina Auditor. Partisan control did not change for the 17 other SFO positions (10 treasurer and seven other auditor offices)…
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Oklahoma AG appeals ESG ruling to state Supreme Court
What’s the story? Oklahoma Attorney General Gentner Drummond (R) filed an appeal with the state Supreme Court seeking to overturn a lower court’s ruling against the state’s anti-ESG law. The statute prohibits state contracts and investments with asset managers who—in the state treasurer’s view—boycott the fossil fuel industry. Why does it matter? Oklahoma’s decision on…
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ESG policy debated in state treasurer races
Voters in 10 states will vote on their treasurer next week. Voters in 8 states will vote on their auditor. State treasurers oversee state investments, such as public pension funds, making them responsible for deciding if their respective states will incorporate ESG strategies into their portfolios. Additionally, both treasurers and auditors commonly have roles implementing…