Kentucky State Treasurer Allison Ball published a list of 11 financial companies, including several major Wall Street banks, that she deems to be hostile to the fossil fuel industry.
BlackRock, Citigroup and JPMorgan Chase were among the companies named in the
The legislation, which resembles actions taken by Republican-led states including West Virginia and Texas, will require state entities to divest from the blacklisted firms, with certain exceptions.
"When companies boycott fossil fuels, they intentionally choke off the lifeblood of capital to Kentucky's signature industries," Ball said in a press
The move is the latest in the GOP fight against what Republicans perceive to be liberal-leaning financial practices. The strategy known as environmental, social and governance investing has drawn intense scrutiny as critics say it's part of a broader Democratic effort to prioritize climate change and other societal issues to the detriment of the fossil fuel industry.
Kentucky governmental entities have 30 days to notify both the treasurer's office and companies of any holdings. Named institutions have 90 days from that point to "cease engaging" in boycotts to avoid divestment, according to a notice on the treasurer's website. Listed firms will have an opportunity to "clarify" whether they boycott energy companies.
Governmental entities are required to sell, redeem, divest or withdraw all publicly traded securities of companies that continue boycotts within a year, though the law makes some exceptions like if divestment would result in a loss.
Representatives for BlackRock and JPMorgan didn't immediately reply to request for comment. Mark Costiglio, a spokesperson for Citigroup, declined to comment.
The
- BlackRock, Inc.
- BNP Paribas SA
- Citigroup Inc.
- Climate First Bank
- Danske Bank A/S
- HSBC PLC
- JPMorgan Chase & Co.
- Nordea Bank ABP
- Schroders PLC
- Svenska Handelsbanken AB
- Swedbank AB
