Wilton Simpson hammers U.N. climate alliance of investors after JPMorgan Chase, BlackRock drop out

Agriculture Commissioner Wilton Simpson is not letting up his criticism of a United Nations-led investor alliance aimed to address climate change that Simpson and other critics say could hurt business and agricultural interests.

The Climate Action 100+ group includes hundreds of financial institutions managing tens of trillions of dollars. The goal, its supporters say, is to work with companies to lessen carbon emissions and enact other policies to improve the environment.

The group was in the news this week as two investing powerhouses — JPMorgan Chase and BlackRock — withdrew from the organization.

JPMorgan said it would prefer to stick with its in-house climate policies rather than be locked into the Climate Action 100+ initiatives.

BlackRock said it was dropping its membership because it believes the Phase 2 strategy, which takes effect in June, conflicts with U.S. laws requiring money managers to act solely in their clients’ long-term economic interests. The $10-trillion manager is setting up a new stewardship option allowing clients, particularly in Europe, to set decarbonization as part of their investment objectives. For clients who do not opt do so, BlackRock will continue to prioritize financial results, the note said.

Simpson and other critics worry the U.N. group policies will crack down too hard on agriculture and other industries, setting up strict standards that many farmers can’t keep up with. The Florida Agriculture Commissioner also worries about environmental, social and governance (ESG) policies pushed by the climate alliance.

Simpson released a statement Friday reiterating those concerns amid news JPMorgan Chase and BlackRock had pulled out.

“I was proud to stand with 11 other state agriculture commissioners demanding accountability from America’s largest banks over their commitments to left-wing, anti-agriculture, ESG-driven, and anti-consumer climate policies from the United Nation’s Net-Zero Banking Alliance,” Simpson said.

“If these banks had their way, they would unilaterally force America’s farmers and ranchers — through the threat of withholding capital and financing — to adopt ‘green’ infrastructure, technology and equipment. We will not stand idly by and allow unelected individuals and woke institutions to make unchecked decisions that would intentionally cripple American agriculture and threaten our food security and national security.”

Simpson and 11 other Agriculture Commissioners had pushed for some of America’s largest banks to fully disclose their ESG investment policies, expressing concern that farmers could be impacted.

Simpson, who is himself a farmer, served as Senate President before winning election as the state’s Agriculture Commissioner.