JPMorgan, Goldman face probe by 19 states over ESG investing

Nineteen state attorneys general including from Arizona and Texas have sent civil investigative demands to the country’s six biggest banks, alleging their environmental, social, and governance-related practices hurt the American energy industry.

Republican-led states have ramped up attacks on what they view as a woke bias at financial companies. Asset manager BlackRock and investment research firm Morningstar have also been targeted in recent months. 

The attorneys general are seeking documents from the banks about their involvement with the United Nations’ Net-Zero Banking Alliance, according to their statements on Wednesday.

The NZBA is a group of banks “committed to aligning their lending and investment portfolios with net-zero emissions by 2050,” according to the UN website.

The investigation is targeting JPMorgan Chase, Goldman Sachs, Bank of America, Citigroup, Wells Fargo and Morgan Stanley.

“American banks should never put political agendas ahead of the secure retirement of their clients,” Arizona AG Mark Brnovich said in a statement.

“The last thing Americans need right now are corporate activists helping the left bankrupt our fossil fuel industry,” Texas AG Ken Paxton said, adding that the banks practices potentially violate consumer protection laws.

JPMorgan declined to comment, while the other five banks did not immediately respond to requests for comment.