Florida Agriculture Commissioner Wilton Simpson issued a statement Friday following the news of JPMorgan Chase and BlackRock withdrawing from the United Nation’s Net-Zero Banking Alliance,
This is a climate initiative focused on “combating global warming through corporate sustainability agreements.”
However, Commissioner Simpson blasted the alliance as ‘anti-agriculture.’
“I was proud to stand with 11 other state agriculture commissioners demanding accountability from America’s largest banks over their commitments to left-wing, anti-agriculture, ESG-driven, and anti-consumer climate policies from the United Nation’s Net-Zero Banking Alliance. If these banks had their way, they would unilaterally force America’s farmers and ranchers – through the threat of withholding capital and financing – to adopt ‘green’ infrastructure, technology, and equipment. We will not stand idly by and allow unelected individuals and woke institutions to make unchecked decisions that would intentionally cripple American agriculture and threaten our food security and national security.”
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Commissioner Simpson recently joined 11 other state agriculture commissioners demanding information related to anti-agriculture climate commitments made by six of the nation’s largest banks.
JPMorgan Chase and BlackRock are the first banks targeted by this effort to abandon commitments to the Net-Zero Banking Alliance.
JPMorgan Chase’s Departure from the Climate Alliance
JPMorgan Chase, one of the largest financial institutions in the United States, cited its in-house sustainability efforts and the establishment of its climate risk framework as reasons for its withdrawal from the alliance.
The bank emphasized that it had built a team of 40 dedicated sustainable investing professionals, including investment stewardship specialists, to address climate-related issues. With these strengths and the evolution of its own stewardship capabilities, JPMorgan Chase concluded that it would no longer participate in Climate Action 100+ engagements.
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BlackRock’s Decision to Scale Back Involvement
BlackRock, another major player in the financial industry, has chosen to substantially scale back its involvement in the U.N. Net-Zero Banking Alliance. Instead, the company will shift its focus to its smaller international entity, where a majority of clients are pursuing decarbonization goals.
This move comes as BlackRock expresses concerns about potential legal issues related to the alliance’s climate initiatives.
State Street’s Exit from the Climate Alliance
State Street Global Advisors (SSGA), a global asset management firm, has also announced its departure from the U.N. Net-Zero Banking Alliance.
The firm stated that the alliance’s “phase 2” commitments conflicted with its internal investing policies. SSGA’s exit highlights the challenges faced by financial institutions in balancing their sustainability goals with their fiduciary responsibilities.
Impact on the Agriculture Sector
One of the key concerns surrounding the U.N. Net-Zero Banking Alliance is its potential impact on the agriculture sector. Commissioner Wilton Simpson of the Florida Department of Agriculture and Consumer Services has been vocal about his opposition to what he sees as anti-agriculture climate policies.
He believes that the alliance’s focus on “green” infrastructure and technology could threaten American agriculture and food security.
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