Bank of America, previously praised for pledging not to finance new coal mines, coal-burning power plants, or Arctic drilling projects due to environmental concerns, has backtracked on its commitments. The bank’s latest environmental and social-risk policy now subjects such projects to “enhanced due diligence,” aligning with a broader trend of Republican-led backlash against corporations considering environmental factors. This shift comes amid conservative criticism of “woke capitalism,” leading to a chill in the E.S.G. (environmental, social, and governance) sector and record withdrawals from sustainability-focused funds. Bank of America’s updated policy removes language prohibiting direct financing of thermal coal mines, petroleum exploration in the Arctic, and construction of new coal-fired power plants without carbon capture technology. The bank cites “heightened risks” requiring enhanced due diligence but declines to specify details. Similarly, JPMorgan Chase faced criticism for revising its oil and gas emissions-reduction target. Despite these changes, fossil-fuel financing remains substantial, raising concerns among environmental advocates about the signaling effect and urgency of addressing climate change.

https://www.nytimes.com/2024/02/03/climate/bank-of-america-esg.html