More than two dozen banks and other financial firms have declared themselves non-hostile to Texas’ energy industry after the state sued the financial industry threatening to shut down its access to the Texas financial system.
In March, Texas Comptroller Glenn Hager asked 19 financial firms, including the world’s largest asset manager and some of America’s largest banks, if they were boycotting the fossil fuel industry as the largest US oil-producing state sought to clarify fossil fuel financial institutions. investment policies and procedures.
“A company that does not provide clarification 60 days after receiving this letter will be presumed to be boycotting energy companies,” Hager said.
It appears financial firms wasted no time in responding to the letter, with more than 20 of them doing so before the deadline given to them by the Texas Comptroller, Bloomberg reported, citing their answers.
A small Dallas-based asset manager actually responded with “Hell no,” according to the report.
Other companies targeted by Texas authorities are BlackRock, JP Morgan, Wells Fargo and HSBC.
“We would like to emphasize at the outset that we provide financial products and services to many companies that are engaged in the exploration, production, use, transport, sale or manufacture of energy from combustible fuels. (“energy companies”), and intend to do so in the future,” JP Morgan executive vice president and general counsel Stacey Friedman wrote, as quoted by Bloomberg.
HSBC wrote that it “does not see itself as a company that ‘boycotts’ the financing of energy companies”, and went on to explain that “HSBC believes it can have the greatest impact on climate action by s actively engaging with its clients on their transition, focusing on the need for strong and credible transition plans, and providing the financing and advisory solutions that help unlock the necessary investments.
By Irina Slav for Oilprice.com
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