US House Report: 'Climate Cartel' Pressures Companies to Reduce Emissions

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Facts

  • The Republican-majority House Judiciary Committee issued an interim report on Tuesday claiming that financial firms and advocacy groups colluded to pressure US companies to reduce their greenhouse gas emissions, in an alleged breach of antitrust law.1
  • Those singled out include the 'Big Three' asset managers — Blackrock, Vanguard, and Street State — and climate groups such as Climate Action 100+, Net Zero Asset Managers, and Glasgow Financial Alliance for Net Zero.2
  • They are accused of forming a 'climate cartel' that conspired to move investments from the fossil fuel industry to the so-called environmental, social, and governance (ESG) initiatives, which the GOP has long criticized.3
  • The report said that Climate Action 100+ 'bullies asset managers to join,' pressuring them to use their shareholder votes in support of proposals to reduce fossil fuel extraction and raise energy prices for US consumers.4
  • The investment group comprising over 700 investors has rejected the allegations of collusion, adding that all members are independent. The investigation, launched in 2022, continues into other climate-focused investors.1
  • At a hearing on Wednesday, representatives of some asset managers said their goal is to maximize returns over the long term. Democrats on the committee have rejected the allegation that climate cooperation violates the law or amounts to collusion.5

Sources: 1Reuters, 2New York Post, 3thehill.com, 4Voice of America and 5Houstonchronicle.

Narratives

  • Right narrative, as provided by Wsj. The Democrats have allied with Wall Street against Main Street as they defend politically motivated financial bullying. ESG investing has a dismal track record with returns, with many companies pulling their money from these endeavors. If this is indeed the case, why are nongovernmental organizations and asset managers so adamant about pushing it and harming livelihoods in fossil fuel industries? There is a hidden agenda at play that must be exposed.
  • Left narrative, as provided by Atlantic. The dollars-and-cents world of finance has no room for political idealism. ESG investing has had little impact on the bottom line of companies or on the climate, as it amounts to little more than greenwashing. ESG criteria also include organizational factors that will have an impact on how profitable or sustainable a business is, with the GOP's attempts to ban it being foolish and misguided. The ESG bogeyman simply does not exist.

Predictions