The Lone Star state said the ban stems from the bank’s association with the Net Zero Banking Alliance and refusal to provide additional information about its carbon emissions commitments.
Dive Brief:
- Texas Attorney General Ken Paxton has banned United Kingdom-based bank Barclays from participating in the state’s municipal bond market over its role as a “fossil fuel boycotter,” Paxton’s office announced Friday. The Republican lawmaker said the bank failed to respond to requests inquiring about its ESG commitments.
- The bank had been under review since last year for its participation or affiliation with the United Nations’ Net Zero Alliance programs — initiatives that aim to slash greenhouse gas emissions by adjusting investment portfolios — Paxton’s office said in an All Bond Counsel letter. Per the letter, Barclays told the state last week it would not be able to provide additional information to prove compliance with the law.
- The Lone Star state said it will no longer approve any municipal bonds or public securities that Barclays underwrites or is associated with the bank. Barclays was the ninth-largest underwriter of Texas municipal bonds in 2023, according to Bloomberg.
Banking Dive
by Lamar Johnson
Jan. 29, 2024