Arizona to end investigations into ESG investing practices


Arizona will no longer investigate banks and other financial institutions over ESG investing practices, according to the state’s new Attorney General Kris Mayes.

According to ESG Today, under the administration of former Governor Doug Ducey – a Republican – Arizona had adopted or participated in a series of anti-ESG initiatives.

These initiatives included revising the investment policies of the State Treasurer’s Office to disallow the use of ESG factors in the investment process.

Meanwhile, Mayes’ predecessor Mark Brnovich joined other Attorneys General in publishing a letter accusing BlackRock of acting with ‘mixed motives’ in its pursuit of an ‘anti-fossil fuel and pro-net zero agenda.

Mayes – a Democrat – said that she believes it is not the place of government to tell corporations and their investors that they cannot invest in sustainable technologies and practices or improve their governance processes.

She added, “Corporations should be permitted to access capital markets in ways that they feel are necessary for the advancement of their investor objectives and for society, as long as they are doing so in a lawful manner. Corporations increasingly realize that investing in sustainability is both good for our country, our environment, and public health and good for their bottom lines.”

The Chartered Banker Institute (CBI) recently welcomed an FCA discussion paper that focused on enabling finance to deliver on its potential to drive sustainable change.

The FCA said it recognises the need for genuine capability-building across the financial sector, including staff training on climate change and net zero and sustainability more broadly, identifying the PRB Academy as a good example of a UK and global initiative in this area.

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