How do banks accomplish emmisson reduction targets for oil and gas portfoilios? (Page 1/1)
2.5 MAY 10, 01:39 PM
Banks are doing it. Aligning to the "Paris Agreement".
Wouldnt that mean discriminating in unfair ways?


Net zero banking alliance
https://www.unepfi.org/news...-cop-climate-action/

"The industry-led, UN-convened Net-Zero Banking Alliance brings together banks worldwide representing about 40% of global banking assets, which are committed to aligning their lending and investment portfolios with net-zero emissions by 2050. Combining near-term action with accountability, this ambitious commitment sees signatory banks setting an intermediate target for 2030 or sooner, using robust, science-based guidelines."
olejoedad MAY 10, 01:48 PM
It's called the power of the purse.

Oil related companies had cash flow crunches during 2020 and 2021, many went out of business as a result.
Those that survived are financially stressed, and like many companies use bank loans to maintain business activity on a week to week basis.
By refusing to loan money to oil related companies, the biden administration can claim the high prices for energy are due to "corporate greed as they have plenty of oil leases".

Low information people believe the misinformation, spread by the government and the left leaning media.

America is being lied to by government and media.
williegoat MAY 10, 02:27 PM
Last year, after the regime change, I was talking with my brokerage to make some changes. He asked me if I wanted to invest in ESG funds (I think that is what he called them). I had never hear the term and when he explained it, I asked him, "Why would anyone do that?" His reply spoke more than the words, "I have no idea."
2.5 MAY 11, 02:01 PM

quote
Originally posted by williegoat:

Last year, after the regime change, I was talking with my brokerage to make some changes. He asked me if I wanted to invest in ESG funds (I think that is what he called them). I had never hear the term and when he explained it, I asked him, "Why would anyone do that?" His reply spoke more than the words, "I have no idea."



The ESG garbage is everywhere. It replaced actual business ...and common sense.
2.5 MAY 12, 02:20 PM
Thought there were laws against refusing to loan to qualified legitimate customers?
rinselberg MAY 12, 03:00 PM

quote
Originally posted by 2.5:
Thought there were laws against refusing to loan to qualified legitimate customers?


It's illegal for banks, venture capitalists and other investors to discriminate on the basis of race, sex or Greenhouse Gas Emissions in any of the former Confederate states. A Reconstructionist plank of the Postbellum South that persisted, even despite attempts at de facto nullification via "Jim Crow". Reference the famous license plates issued by the Alabama DMV in 1921 "Our Fathers Died For Carbon 'Oxide." Followed the next year by "Always Be True, To CO2."

[This message has been edited by rinselberg (edited 05-12-2022).]

rinselberg MAY 12, 04:10 PM

quote
BlackRock [Investment Management Company] will not support climate-change shareholder votes that seek to micromanage a company's climate-change programs, the company said in its 2022 investment stewardship report released Tuesday.

"Having supported 47% of environmental and social shareholder proposals in 2021 (81 of 172), BIS (BlackRock Investment Stewardship) notes that many of the climate-related shareholder proposals coming to a vote in 2022 are more prescriptive or constraining on companies and may not promote long-term shareholder value," the report said. . . .


"BlackRock won't back climate shareholder proposals it considers too prescriptive"
Christine Williamson for Pensions & Investments; May 10, 2022.
https://www.pionline.com/es...ers-too-prescriptive

[This message has been edited by rinselberg (edited 05-12-2022).]

theBDub MAY 13, 08:08 PM

quote
Originally posted by 2.5:

Thought there were laws against refusing to loan to qualified legitimate customers?



ESG is more than just emissions targets, but either way, banks can weight their investments however they want as long as they still abide by any fiduciary duties. They also don’t have to loan money to anyone who asks—they can view the lack of sustainable planning to be a major risk, for example.

Should they? Probably not by default, but customers can choose to go with banks who prioritize it, therefore making it more important for banks.

Promising something that makes people have warm fuzzies and doesn’t really hurt the bank in any meaningful way is just good marketing.