Arizona House won’t ban banks from using ‘green’ or ‘woke’ scores for loans | Government and politics

The defeat of House Bill 2656 came as two Republicans, Michelle Udall of Mesa and Joel John of Arlington, lined up with all House Democrats in opposition. Neither has explained their decision.

But Rep. Morgan Abraham, D-Tucson, chastised other Republicans for backing the measure. “It’s about telling businesses how to act, what to do, what they can and can’t do,” he said. “I’m blown away by the dynamic I see.”

But Hoffman argued that if the use of ESG scores is not prohibited, individuals could end up with such scores as well. Then, he said, a bank could, for example, decide to charge someone a higher mortgage rate just because the house isn’t as energy efficient as a lender deems appropriate, a difference that , he says, could cost the owner hundreds of dollars a month. .

“It certainly won’t impact the elites, the wokester megacorporations that run these companies, the people that are in the top 1%,” he said. “It’s going to affect low-income and middle-income families, people who can’t afford to put solar on their homes, people who can’t afford to drive a Tesla or some other green electric car.’ ‘

Rep. Joseph Chaplik, R-Scottsdale, said there are already practical effects of the ESG system. He said the National Credit Union Administration requires credit unions to assess climate risk when making agricultural loans. “If your livestock’s methane footprint is too high, you might not get that loan,” he said.