Baton Rouge, LA — Louisiana State Treasurer John Fleming, M.D., has commended the recent decisions by Morgan Stanley, Bank of America, and Wells Fargo to withdraw from the United Nations-backed Net Zero Banking Alliance. These banks join Goldman Sachs and Citigroup, which had previously left the coalition aimed at advancing global net-zero climate goals through financial activities.
Treasurer Fleming views these departures as a positive step for the American economy. “This is another step toward more economic freedom and a setback for those who advocate the radical ESG (Environmental, Social, and Governance) movement,” Fleming said. Citing studies, he argued that ESG investments often yield poor returns for investors, exacerbate inflation, and are “risky and not financially sustainable.”
Fleming expressed concern over the potential impact of the Net Zero Banking Alliance on Louisiana’s economy, stating that its endorsement of a green energy agenda could “have extremely negative economic consequences for the people of Louisiana.” Analysts have echoed these concerns, noting that the alliance’s push for reduced funding for the oil and gas industry could significantly impact Louisiana, where the sector accounts for 17% of total labor income and 21% of the state’s gross domestic product.
The withdrawals have also been praised by the State Financial Officers Foundation (SFOF), a coalition of Republican state treasurers and auditors advocating for free-market policies. Fleming, an active SFOF member, highlighted the group’s efforts to encourage major financial institutions to leave the alliance.
“We have been urging banks to withdraw from the Net Zero Banking Alliance for months,” Fleming said. “This exodus is encouraging news for Louisiana’s economy and the nation as a whole. Hopefully, it will prompt the remaining banks to follow suit.”
Fleming emphasized the importance of maintaining a robust energy sector and supporting free-market principles to drive economic growth and safeguard Louisiana’s workforce.