January, 24 2023, 01:28pm EDT
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Stop the Money Pipeline coalition members respond to investors filing climate shareholder resolutions at major US and Canadian banks
Resolutions call for top banks and insurance companies to make significant progress on their climate commitments; will require support from major asset managers and other investors
Today, several institutional investors — including the New York City Comptroller, As You Sow (AYS), Sierra Club Foundation (SCF), Trillium Asset Management, and Harrington Investments — announced the filing of climate-related shareholder resolutions at major fossil fuel financing banks in the US and Canada, including JPMorgan Chase, Bank of America, Citigroup, Wells Fargo, Goldman Sachs, and Morgan Stanley.
· Reuters coverage of NYC resolutions
· Bloomberg coverage of SCF & AYS resolutions
The resolutions call on the banks to:
· Adopt policies to
phase out financing of new fossil fuel exploration and development (filed by Sierra Club Foundation, Trillium Asset Management, and Harrington Investments at JPMorgan Chase, Bank of America, Citigroup, Wells Fargo, Goldman Sachs, and Morgan Stanley);
· Disclose robust transition plans on how the banks intend to align financing activities with their near-term emissions reduction targets (filed by As You Sow at JPMorgan Chase, Bank of America, Wells Fargo, Goldman Sachs, and Morgan Stanley);
· Set 2030 absolute emissions reduction targets for energy sector financing (filed by the New York City Comptroller at JPMorgan
Chase, Bank of America (co-filed with the New York State Comptroller), Goldman Sachs, and the Royal Bank of Canada).
A slate of resolutions calling for policies to phase out financing for fossil fuel expansion was filed by the same investors at US banks in 2022. They received between 9 and 13% support, which was a significant milestone for these first-of-their-kind proposals. This year's fossil fuel financing proposals have been updated to encourage banks to finance clients' low-carbon transition so long as those plans are credible and verified. The previous resolutions were supported by many major institutional investors, including the New York State and New York City Common Retirement Funds.
New in 2023 are the resolutions on absolute emissions reductions targets for energy sector financing filed by the New York City and New York State Comptrollers, and the resolutions calling for disclosure of climate transition plans filed by As You Sow. The day before the resolutions were filed, Denmark's largest bank, Danske, announced a phase out of corporate financing for companies engaged in new coal, oil and gas development.
Royal Bank of Canada and the six US banks have committed to align their financing with the goals of the Paris Agreement and to achieve net-zero emissions by 2050. However, scientific consensus shows that fossil fuel expansion is incompatible with keeping global warming below 1.5C, and the big US banks continue to provide billions of dollars every year for new fossil fuel development — a fact underscored by a new report released just last week.
In response to the news, coalition members with the Stop the Money Pipeline issue the following statements:
Arielle Swernoff, US Banks Campaign Manager with Stop the Money Pipeline, said, "Any climate commitment from a bank that is still financing fossil fuel expansion is greenwashing, pure and simple. By supporting these resolutions, shareholders can hold banks accountable to their own climate commitments, effectively manage risk, and protect people and the planet."
Michael Esealuka, Louisiana organizer with Healthy Gulf, said: "The Gulf South is ground zero for environmental racism and climate chaos. Every year we face worsening hurricanes, freezes and floods. Big banks are directly fueling this crisis by financing a massive expansion of petrochemical plants and gas exports in our communities. Bank CEOs like Brian Moynihan, David Solomon and Jamie Dimon made climate commitments — that should mean something. Instead they profit off climate chaos as the Gulf South is made into a sacrifice zone for fossil fuels."
Jeffrey Jacoby, Deputy Director of Texas Campaign for the Environment, said: "Shareholders at big banks need to know that continuing to fund the fossil fuel projects that drive climate change also means perpetuating environmental racism in the Gulf South – the very same communities who've experienced devastating impacts from climate disasters again and again."
Adele Shraiman, Campaign Representative with the Sierra Club's Fossil-Free Finance campaign, said: "Major US banks have fallen behind their global peers by setting weak emissions reduction targets and continuing to pour billions of dollars into fossil fuel expansion every year. Investors are uniquely positioned to push these big banks to stop stalling and finally take meaningful steps to address the climate crisis. We look forward to rallying support behind the investors that are leading the way on these shareholder resolutions to ensure the biggest banks are aligning their practices with their commitment to the goals of the Paris Agreement."
Richard Brooks, Stand.earth Climate Finance Program Director, said: "This action from the New York City Comptroller is exactly the kind of climate leadership institutional investors around the world must take. Banks' lending and underwriting practices must align with science and justice. It's time to cut greenwashed net-zero rhetoric once and for all."
Ruth Breech, Senior Campaigner for Climate and Energy with Rainforest Action Network, said: "Our data shows that US banks like Chase, Citi, BofA and Wells Fargo fuel climate disasters and are the biggest funders of the fossil fuel industry. They try to dismiss this truth through greenwashing, lack of transparency, and moving the goalposts on progress. These resolutions allow shareholders to make sound long-term decisions on their investments. Fossil fuel companies like Exxon, who have misled the public for decades, can no longer be allowed to get rich at our expense—as they export the losses of climate chaos onto the rest of us. Globally we are moving towards a sustainable energy future. Shareholders can lead the way."
Moira Birss, Climate Finance Director with Amazon Watch, said: "The Amazon rainforest—an ecosystem essential to global climate stability—is on the brink of collapse, and yet big banks like Citi, BoA, and JPMorgan continue pouring money into the companies destroying the forest to extract more fossil fuels. This financing not only destroys forests, the climate, and Indigenous livelihoods, but also the credibility of these banks' climate commitments, and it's well past time shareholders hold them to account."
Mary Cerulli, Executive Director of Climate Finance Action, said: The largest banks have all made significant long-term climate commitments. However, they continue to fund fossil fuel companies through bonds and loans locking in new infrastructure projects for decades. These shareholder resolutions will require banks to disclose their transition plans, set specific emission targets, and ensure they hit their long-term net zero goals to mitigate the systemic risk of climate change.
Resolutions at insurance companies
Shareholders have also filed climate resolutions at Chubb, Travelers, The Hartford, and Berkshire Hathaway – four majors in the U.S. insurance sector, another financial pillar of the fossil fuel industry.
Green Century Funds filed resolutions with Chubb, The Hartford, and Travelers, calling on the companies to phase out underwriting of new fossil fuel projects. As You Sow filed resolutions at Chubb, Travelers, and Berkshire Hathaway requesting a report on how each company will measure, disclose, and reduce insured emissions (i.e., emissions from their clients).
Elana Sulakshana, Senior Campaigner with Rainforest Action Network, said, "Shareholders are concerned about the material risks that climate change poses to the insurance industry, as well as the risks posed by insurers' unchecked support for new oil and gas projects. Some Republican state officials are attempting to turn financial institutions' responsible efforts to mitigate risk into a culture war, but investors know that climate risk cannot be ignored, especially within the insurance sector. In the midst of mounting losses from Hurricane Ian and other climate disasters, Green Century Funds is sending a clear message to Chubb, The Hartford, and Travelers: phase out support for fossil fuel expansion and underwrite a clean energy future."
Organizations are gearing up to support the climate resolutions at both banks and insurance companies this spring. Last year, members of the Stop the Money Pipeline coalition mobilized tens of thousands of everyday people to push major investors, such as state pension funds, BlackRock and Vanguard, to support climate action across corporate America. They are promising to double their efforts this year.
BACKGROUND
Comptroller Brad Lander manages the five New York City pension funds, which are valued at approximately $242 billion, making it the fourth largest public pension fund in the US. Comptroller Tom DiNapoli manages the New York State pension fund, which is valued at approximately $272 billion, making it the third largest public pension fund in the US. New York State led the resolution filing at Bank of America.
The resolutions follow a series of recent reports underscoring the scale of bank financing for fossil fuel expansion, and the lack of credible targets and plans to align with the banks' climate commitments:
· A Stand.earth report revealed RBC's surging fossil finance surpassed CAD $9.2 billion within one year of joining GFANZ, despite its public commitments to reach net-zero financed emissions. Since the 2016 Paris Climate Agreement was signed, RBC has pumped more than USD $201 billion (CAD $262 billion) into fossil fuel companies, making it the fifth worst fossil fuel financier in the world, and #1 in Canada.
· A Rainforest Action Network report showed that the big six US banks provided about $445 billion in financing for the top 100 companies expanding fossil fuels between 2016-2021, which accounted for one-third of the financing from the world's 60 largest banks to those top expanders.
· A Sierra Club report analyzing the net-zero pledges of US banks revealed that their commitments and actions fall far short of what's needed to meet global climate goals. The report outlines why it is essential for banks to set absolute emissions reduction targets instead of intensity-only targets, especially in high-polluting sectors. At present, Citi and Wells Fargo are the only major US banks to have set absolute emissions reduction targets for their financing of the oil and gas sector.
· The 2022 Banking on Climate Chaos report, to be updated this coming March, revealed in the six years following the Paris Agreement (2016-2021), the five largest bankers of fossil fuels in the world were:
· JPMorgan Chase: USD $382 billion;
· Citigroup: USD $285 billion;
· Wells Fargo: USD $272 billion;
· Bank of America: USD $232 billion;
· RBC: USD $201 billion;
· Two others – Morgan Stanley (USD $137 billion) and Goldman Sachs (USD $119 billion) – were in the top 15 globally.
· Citigroup: USD $285 billion;
· Wells Fargo: USD $272 billion;
· Bank of America: USD $232 billion;
· RBC: USD $201 billion;
· Two others – Morgan Stanley (USD $137 billion) and Goldman Sachs (USD $119 billion) – were in the top 15 globally.
The Stop the Money Pipeline coalition is over 160 organizations strong holding the financial backers of climate chaos accountable.
LATEST NEWS
US Voter Registrations Surge as Republicans Try to Limit Ballot Access
One group said it has registered over 100,000 new voters since U.S. President Joe Biden dropped out of the 2024 race.
Jul 26, 2024
The group behind a popular get-out-the-vote technology platform said Friday that it's registered more than 100,000 new U.S. voters since President Joe Biden withdrew from the 2024 presidential race, a surge that came amid mounting Republican efforts to make it harder to register and vote.
Vote.org said that 84% of voters registered in the new wave are under age 35. Nearly 1 in 5 new registrees is 18 years old. Andrea Hailey, the group's CEO, said that "since 2020, we have led the largest voter registration drive in U.S. history," with more than 7.8 million people registered.
After dropping out, Biden endorsed Vice President Kamala Harris to face former Republican President Donald Trump and Sen. JD Vance (R-Ohio) in the November election. The new presumptive Democratic candidate has already earned endorsements from many Democrats in Congress and groups advocating on issues including climate, labor, and reproductive rights.
Vote.org's success comes as Republicans at the federal level are proposing and passing legislation creating obstacles to the ballot box.
Earlier this month, U.S. House Republicans passed Rep. Chip Roy's (R-Texas)
Safeguard American Voter Eligibility (SAVE) Act, which would require proof of American citizenship to vote in federal elections. Republicans claim the bill is meant to fix the virtually nonexistent "problem" of noncitizen voter fraud.
However, Rep. Summer Lee (D-Pa.)
slammed the bill as a "xenophobic attack" meant to silence "Black voices, brown voices, LBGTQIA+ voices, [and] young voices."
Lee said the SAVE Act underscores the need to pass her recently introduced Right to Vote Act, "which would establish the first-ever affirmative federal voting rights guarantee, ensuring every citizen may exercise their fundamental right to cast a ballot."
Earlier this year, U.S. Senate Democrats also reintroduced the John R. Lewis Voting Rights Advancement Act, legislation its sponsors say will "update and restore critical safeguards of the original Voting Rights Act."
Meanwhile, Republican-controlled state legislatures and red-state governors are enacting laws imposing tough restrictions on voter registration, with violations punishable by stiff fines that critics say are meant to dissuade people from registration drives and similar efforts.
Again under the guise of preventing fraud, Republican Florida Gov. Ron DeSantis last year signed legislation limiting voter registration drives, with fines of up to $250,000 for violators.
"These draconian laws and rules are like taking a sledgehammer to hit a flea," Cecile Scoon, an attorney and president of the Florida chapter of the League of Women Voters,
toldThe New York Times in an article published Friday.
Three years after Kansas passed a law making "false representation" of an election official a crime, campaigners say it's become extremely difficult to sign up new voters.
"In 2020, even with the pandemic, we had registered nearly 10,000 Kansans to vote. Now, we haven't been able to register anyone," Davis Hammet, president of the youth voter mobilization group Loud Light, told the Times.
In Louisiana, Republican state lawmakers quietly passed legislation making it easier for election officials to toss out absentee ballots with missing details, limiting how people can mail in other voters' ballots, and restricting the ability to assist people with disabilities with their ballots.
"What we've found is that these measures have a disproportionate impact on voters with disabilities, both Black and white," NAACP Legal Defense Fund senior policy counsel Jared Evans
toldNola.com earlier this week.
"It's clear that their goal is to make it harder to vote, harder for specific communities to vote especially," Evans added. "What they don't realize is that these laws hurt white voters, too."
In Nebraska, Republican Secretary of State Bob Evnen last week
ordered county election offices to stop registering voters with past felony convictions who have not received official pardons. The move came after the state's unicameral Legislature passed a bill granting voting eligibility to felons immediately after they have completed their sentences instead of waiting two years.
"We refuse to accept thousands of Nebraskans having their voting rights stripped away," ACLU of Nebraska legal and policy fellow Jane Seu said in a statement. "We are confident in the constitutionality of these laws, and we are exploring every option to ensure that Nebraskans who have done their time can vote."
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"You thought Project 2025 was just a threat after the election? It's actually happening *right now,*" said one climate campaigner.
Jul 26, 2024
Climate and environmental defenders on this week implored U.S. senators to block a permitting reform bill introduced this week by Sens. Joe Manchin and John Barrasso that campaigners linked to Project 2025, a conservative coalition's agenda for a far-right overhaul of the federal government.
Common Dreamsreported Monday that Manchin (I-W.Va.) and Barrasso (R-Wyo.)—respectively the chair and ranking member of the Senate Energy and Natural Resources Committee—introduced the Energy Permitting Reform Act of 2024.
The Natural Resources Defense Council (NRDC) noted that although the proposal "includes several positive reforms for the accelerated development of transmission projects," it also advocates "limiting opportunities for communities to challenge projects, loosening oversight for drilling and mining projects, extending drilling permits and fast-tracking [liquified natural gas] permits, and several other provisions friendly to fossil fuel giants."
"This dangerous bill doesn't deserve a floor vote."
These are nearly identical policies to what's proposed in Project 2025's Mandate for Leadership. The plan, which was spearheaded by the Heritage Foundation, calls for "unleashing all of America's energy resources," including by ending federal restrictions on fossil fuel drilling on public lands; limiting investments in renewable energy; and rolling back environmental permitting restrictions for new oil, gas, and coal projects, including power plants.
While Manchin has been trying—and failing—to pass fossil fuel-friendly permitting reform legislation for years, Brett Hartl, director of public affairs at the Center for Biological Diversity, said that his "Frankenstein legislation is taken straight from Project 2025, and it's the biggest giveaway in decades to the fossil fuel industry."
Hartl said the bill "deprives communities of the power to defend themselves and gives that power to Big Oil by making it harder for communities to challenge polluting projects in court," and "prioritizes the profits of coal barons over public health."
"And it mandates oil and gas extraction in our oceans," he continued. "The insignificant crumbs thrown at renewable energy do nothing to address the climate emergency."
"Monday was the hottest day in recorded history," Hartl noted. "It's shocking that as the climate emergency continues to break records around us, the Senate continues to fast-track the fossil fuel expansion that is killing us. This dangerous bill doesn't deserve a floor vote."
Hartl added that "to preserve a livable planet," Senate Majority Leader Chuck Schumer (D-N.Y.) "must squash this legislation now."
Manchin—who has said this will be his last term in office—has been a steadfast supporter of the fossil fuel industry, partly because his family owns a coal company. The senator says his permitting reform bill "will advance American energy once again to bring down prices, create domestic jobs, and allow us to continue in our role as a global energy leader."
However, Allie Rosenbluth, Oil Change International's U.S. manager, warned Thursday that "this bill is yet another dangerous attempt by Sen. Manchin to line the pockets of his fossil fuel donors, sacrificing communities and our climate along the way."
"Don't be fooled: The Energy Permitting Reform Act is another dirty deal to fast-track fossil fuels above all else," she continued. "It would unleash more drilling on federal lands and waters, unnecessarily rush the review of proposed oil and gas export projects, and lift the Biden administration's pause on new LNG exports."
"We urge Congress to reject this proposal and commit to action that protects frontline communities from the impacts of fossil fuel development and the climate crisis," Rosenbluth added.
"Don't be fooled: The Energy Permitting Reform Act is another dirty deal to fast-track fossil fuels above all else."
NRDC managing director of government affairs Alexandra Adams said Wednesday that "this bill is a giveaway for the oil and gas industry that will ramp up drilling and environmental destruction at a time when we need to be putting a hard stop to fossil fuels."
"We cannot afford to roll back so many of our bedrock environmental and community legal protections and offer a blank check to the oil and gas industry," she stressed. "We need new solutions for permitting if we are going to meet our clean energy potential and address the climate challenge. But this is not it."
"This bill would altogether be a leap backward on climate, health, and justice if passed into law," Adams added. "The Senate should reject it and look toward alternative solutions already being considered."
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Both parties in Sudan's civil war are to blame for a looming mass famine, experts say, and the military's blocking of U.N. aid at a border crossing with Chad exacerbates the problem.
Jul 26, 2024
Sudan's military is blocking United Nations aid trucks from entering at a key border crossing, causing severe disruptions in aid in a country that experts fear may be on the brink of one of the worst famines the world has seen in decades, The New York Timesreported Friday.
The border city of Adré in eastern Chad is the main international crossing into the Darfur region of Sudan, but the Sudanese Armed Forces (SAF), the state's official military, which is engaged in a civil war with a paramilitary group called the Rapid Support Forces (RSF), has refused to issue permits for U.N. trucks to enter there, as it's an RSF-controlled area.
U.S. and international officials have issued increasingly alarmed calls for steady aid access to help feed the millions of severely malnourished people in Darfur and other areas of Sudan.
Last week, Linda Thomas-Greenfield, the United States ambassador to the U.N., said that the SAF's obstruction of the border was "completely unacceptable."
Both warring parties in Sudan continue to perpetrate brazen atrocities, including starvation of civilians as a method of warfare. This piece focuses on the SAF's ongoing obstruction of essential aid. The situation is catastrophic. The policy is criminal. https://t.co/FKhqQh3EI9.
— Tom Dannenbaum (@tomdannenbaum) July 26, 2024
The Sudanese who've made it out of the country and into Adré reported dire and unsafe conditions in their home country.
"We had nothing to eat," Bahja Muhakar, a Sudenese mother of three, told the Times after she crossed into Chad, following a harrowing six-day journey from Al-Fashir, a major city in Darfur. She said the family often had to live off of one shared pancake per day.
Another mother, Dahabaya Ibet, said that her 20-month-old boy had to bear witness to his grandfather being shot and killed in front of his eyes when the family home in Darfur was attacked by gunmen late last year.
Now the mothers and their families are refugees in Adré, where 200,000 Sudanese are living in an overcrowded, under-resourced transit camp.
In addition to those that have made it out of the country, there are 11 million people internally displaced within Sudan, most of whom have become displaced since the civil war began in April 2023.
An unnamed senior American official told the Times that the looming famine in Sudan could be as bad as the 2011 famine in Somalia or even the great Ethiopian famine of the 1980s.
In April, Reutersreported that people in Sudan were eating soil and leaves to survive, and The Washington Postcalled it a nation in "chaos," reporting that World Food Program trucks had been "blocked, hijacked, attacked, looted, and detained."
In late June, a coalition of U.N. agencies, aid groups, and governments warned that 755,000 people in Sudan faced famine in the coming months.
The U.S. last week announced $203 million in additional aid to Sudan—part of a $2.1 billion pledge that world leaders made in April, which some countries have not yet delivered on.
Some officials including Thomas-Greenfield, who has dubbed the situation in Sudan "the worst humanitarian crisis in the world," have called for the U.N. Security Council to allow aid delivery into the country even in the absence of SAF approval; it's believed that Russia would veto such a measure.
Sudan's civil war has seen a great deal of international interference. Amnesty International on Thursday published an investigatory briefing showing that weapons from Russia, China, Serbia, Turkey, Yemen, and the United Arab Emirates (UAE) had been identified in the country. And The Guardian on Friday reported that the passports of Emirati citizens had been found among wreckage in Sudan, indicating the UAE may have troops or intelligence officers on the ground, though the UAE denied the accusation.
The International Service for Human Rights on Friday warned that both the SAF and RSF were engaged in wrongful killings and arrests, especially targeted at lawyers, doctors, and activists. The group called for an immediate cease-fire.
The SAF and Sudanese government figures have cast doubt on international experts' claims about famine in the country.
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