Kentucky accuses financial firms of boycotting energy companies

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On Tuesday, the state of Kentucky warned 11 of the largest financial companies of divestment for boycotting energy companies. The 11 financial companies that Kentucky has targeted include JPMorgan Chase & Co, BlackRock, and Citigroup.

Kentucky warns financial firms of divestment

The warning was given by the Kentucky State Treasurer, Allison Ball. Ball said state government bodies should notify the Treasury about any direct and indirect holdings in the listed companies. The government bodies must also write to these firms and urge them to halt the “boycott.” Failure to do this would subject these firms to divestment.

The US has been making significant changes to promote a greener and more sustainable future. The Republican Party has been pressuring the finance sector, claiming that the industry was engaging in aggressive environmental, social, and governance practices.

Over the past year, other states, such as Texas and West Virginia, have halted their partnership deals with other financial companies. A spokesperson from JPMorgan Chase has commented on the development, saying that the financial institution believed that its business operations abided by the laws of Kentucky.

“We believe our business practices are in line with Kentucky law, and we are hopeful a deeper look at these facts would lead to reconsideration,” JPMorgan Morgan Chase said. The financial firm has also said that the bank was among the largest financiers in the traditional and renewable energy industries across the United States and Kentucky.

JPMorgan provides financing to some of the largest energy companies in the United States, including American Electric Power and Duke Energy Corp. These energy companies operate within Kentucky.

The other firm that has been threatened with divestment is Citigroup. Unlike JPMorgan, Citi Group has not responded to the matter. Like the other financial firms, Citi Group is being accused of boycotting energy companies in the state. The firm has not defended itself against these accusations or provided the list of energy companies it backs.

BlackRock refutes claims

On the other hand, BlackRock, the largest asset management firm globally, has responded to the allegations through a recent testimony given by the head of the external affairs group at the company, Dalia Blass. BlackRock defended itself by refuting claims that it had boycotted energy companies in the state, adding that it had invested in multiple energy firms.

Blass mentioned some of the energy companies that BlackRock had invested in, including Exxon Mobil Corp and Occidental Petroleum Corp. It is still unclear whether Kentucky will follow through with the threat of disinvestment, with the companies mentioned coming forward to list the investment they have made in the sector.

About Ali Raza PRO INVESTOR

Ali is a professional journalist with experience in Web3 journalism and marketing. Ali holds a Master's degree in Finance and enjoys writing about cryptocurrencies and fintech. Ali’s work has been published on a number of leading cryptocurrency publications including Capital.com, CryptoSlate, Securities.io, Invezz.com, Business2Community, BeinCrypto, and more.