21 states warn JPMorgan’s Jamie Dimon, BlackRock’s Larry Fink to scrap ‘woke’ environmental goals

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Nearly two dozen states warn financial firms to ditch “woke investing” programs

CEOs of the nation’s largest financial firms, including BlackRock’s Larry Fink and JPMorgan’s Jamie Dimon, have been cautioned by 26 state financial officers to abandon “woke investing” initiatives focused on environmental objectives if they wish to maintain business relationships in their states.

Letters were sent to top executives at BNY Mellon, Goldman Sachs, Morgan Stanley, Fidelity Investments, State Street, and Vanguard, instructing them to take specific actions to exhibit a commitment to a fiduciary model based on financial integrity rather than political advocacy.

Key Actions Required

Abstain from international political agendas such as net-zero climate mandates

Avoid the EU’s Corporate Sustainability Directive

Align with traditional fiduciary standards

State officials criticized the shift away from traditional fiduciary duty in favor of ESG investing by financial firms, emphasizing the need for evidence that investment practices align with established fiduciary standards.

Response Deadline

CEOs were given a deadline of September 1 to respond to the demands outlined in the letters from officials representing 21 states, including Alabama, Arizona, Iowa, Nebraska, Oklahoma, Pennsylvania, and Utah.

The move comes after Texas recently removed BlackRock from its blacklist, following a ban lasting nearly three years due to the company’s climate policies.

Continued Scrutiny

Despite some rollbacks in environmental goals by BlackRock, the report from the American Energy Institute and Consumers’ Research indicates that the company is still involved in practices that aim to limit fossil fuel production.

While Texas has eased pressure on BlackRock, the 21 states involved are intensifying calls for financial firms to eliminate ESG goals.

Statement from State Financial Officers Foundation

“Requiring America’s financial giants to prove their independence from woke ideology with concrete steps before doing business with a state’s dollars is fully necessary and just makes sense,” said OJ Oleka, CEO of State Financial Officers Foundation.

“For too long, firms like BlackRock have followed the ESG gospel to the legal breaking point of violating their traditional fiduciary duty and putting Americans’ retirement savings at risk.”