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illuminem summarizes for you the essential news of the day. Read the full piece on New York Times or enjoy below:
🗞️ Driving the news: Bank of America has updated its environment and social-risk policy, stepping back from its previous commitments to not finance new coal mines, coal-burning power plants, or Arctic drilling projects
• The bank now states these projects will undergo "enhanced due diligence" rather than being outright rejected.
🔭 The context: This policy revision comes amid growing pressure from Republican lawmakers and financial regulations in states like Texas and West Virginia, aimed at countering corporate sustainability efforts
• The backlash is part of a broader critique against what is termed "woke capitalism," influencing major banks and investment firms to reconsider their stance on environmental and social governance (E.S.G.) principles
🌍 Why it matters for the planet: The move by Bank of America and similar shifts by other financial institutions signal a potential slowdown in the momentum towards greener financing. This retreat could impact global efforts to combat climate change, especially considering the significant role banks play in funding energy projects.
⏭️ What's next: The banking industry's response to political and public pressure raises questions about the future of sustainable finance and the ability of the financial sector to support the transition to a low-carbon economy. It also puts a spotlight on the challenges facing E.S.G. initiatives amid a polarized political landscape.
💬 One quote: "Bank of America is sending a message to its clients that it’s OK to take up new fossil-fuel assets," said Lucie Pinson, director of Reclaim Finance.
📈 One stat: In the seven years following the Paris Agreement, the world’s 60 largest banks provided about $5.5 trillion in financing to the fossil-fuel industry.
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