Canadian banks caught in ESG backlash from U.S. state officials

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Canadian banks caught in ESG backlash from U.S. state officials
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Several U.S. state officials who have waged battle against the use of environmental, social and governance principles in guiding investment decisions

West Virginia State Treasurer Riley Moore on Monday placed Toronto-Dominion Bank and three other banks on its restricted financial institutions list. As a result, they will not be allowed to provide banking services to the state.Two Canadian banks are in the crosshairs of an anti-ESG U.S. state treasurer, who has boycotted one for a purported stand against fossil fuels and given another a pass for loosening a policy on coal lending.

It was the coal policy specifically that led to TD being added to the list, said Jared Hunt, spokesperson for the West Virginia Treasury Department.West Virginia previously barred BlackRock Inc., Goldman Sachs Group Inc., JPMorgan Chase & Co., Morgan Stanley and Wells Fargo & Co. from providing financial services within the state, saying their actions harm the energy industry and limit economic activity.

”Our policies represent a comprehensive, risk-based approach that underscores our commitment to sound and prudent business practices while complying with the laws and regulations of the markets we serve,” BMO spokesman Scott Doll said in a statement.lending, they have said they are setting aside funds and providing research to help them in decarbonization efforts, while also trying to achieve their own net-zero targets.

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