Despite Bank of America’s 2021 commitment to cease financing new coal mines, plants, or Arctic oil drilling, these ventures will now undergo “enhanced due diligence” as outlined in the company’s “Environmental and Social Risk Policy Framework” from December 2023.
The New York Times reported that Bank of America’s “Environmental and Social Risk Policy Framework” from December 2021 declared the firm’s decision to refrain from directly funding new thermal coal mines or the expansion of current ones, as well as petroleum exploration or production actions in the Arctic.
It further stated its decision not to directly fund the creating or development of new coal-fired power plants, with specific exceptions. These statements have been removed from the 2023 version.
Bank of America informed FOX Business through a statement that they employ a risk-based approach for client transactions. Transactions involving heightened risks will undergo an enhanced audit process, which includes senior-level risk review.
According to The Times, this shift occurs amidst states such as New Hampshire, Texas, and West Virginia passing laws to prohibit banks from declining financing for coal projects. Some states have also aimed to criminalize what they term as “environmental, social, and governance” principles within companies.
The conservative opposition to environmental considerations in business has prompted other companies to scale back on specific eco-friendly initiatives.
On Monday 29th of January, a group comprising 12 Republican state agriculture commissioners penned a letter to six prominent U.S. banks, including Bank of America, regarding their net-zero aspirations. This action marks a fresh development in the resistance against what they term “woke investing,” a battle predominantly led by state attorneys general and financial officers. All six banks are members of the Net-Zero Banking Alliance (NZBA).
State officials cautioned that the participation of banks in the global environmental alliance could affect food availability, trigger price spikes, restrict farmers’ access to credit, and result in widespread negative economic repercussions.
Georgia Agriculture Commissioner Tyler Harper conveyed to FOX Business that American agriculture is firmly rejecting the ineffective, left-leaning climate agenda of the United Nations, which aims to undermine one of the nation’s most vital industries.
Harper emphasized, “Now more than ever, banks that do business with America should be unquestionably supporting American industries — and that starts with the one that puts food on our tables, clothes on our backs, and shelter over our heads. The UN’s Net-Zero Banking Alliance would be the equivalent of a run on the bank for our nation’s agriculture industry and pose a serious threat to our national security — and it must be stopped.”