Commissioner Shell challenges nation’s largest banks: Don’t push risky investment strategies onto farmers
Joins multistate coalition of ag leaders to protect farmers
FRANKFORT (Jan. 29, 2024) - Agriculture Commissioner Jonathan Shell joined a multistate coalition challenging the use of ESG (environmental, social, governance) investment strategies by six of the largest financial institutions — Bank of America, Citigroup, Goldman Sachs, JPMorgan Chase, Morgan Stanley, and Wells Fargo. In their letter, the agriculture officers warn of the detrimental impact these risky and politically driven investment strategies will have on the agricultural industry.
These six lending institutions have joined the Net-Zero Banking Alliance (NZBA). NZBA requires its member banks to commit to radical climate standards such as rapidly reducing emissions. For banks to accomplish this goal, they will require customers to measure and disclose Greenhouse Gas (GHG) emissions in specific sectors, including agriculture.
The impact of this type of requirement on the agriculture industry and our farmers cannot be understated. In the letter, Commissioner Shell questions how the banks will implement and monitor their respective compliance with the NZBA. If the banks continue to follow through with the standards set forth by NZBA the commitments will cut America’s beef and livestock consumption in half. The requirements would force farmers to transition to inefficient electric farm machinery and shift away from necessary fertilizers.
“Our country’s large banks are trying to enforce their radical climate agenda by targeting our local farmers and producers,” Commissioner Shell said. “From increased food prices to higher operational costs, these environmental mandates will have a catastrophic impact on our agriculture industry, burdening the hardworking men and women who help put food on our tables daily.”