The World Bank has walked back on its spending commitments following pressure from the US. The target, set in 2023, pledged 45% of the World Bank’s investment to initiatives with climate benefits – a figure the bank exceeded last year. US Treasury Secretary Scott Bessent described the target as “inefficient,” utilising the country’s effective veto power to pressure the bank into removing the target. Should the World Bank maintain its position of appeasement, this may lead to a more fragmented landscape where climate-conscious capital gravitates towards institutions with firmer commitments. The Financial Times reports on the news.
Meanwhile, an Indiana judge has issued a preliminary injunction blocking a law requiring proxy advisory firms to provide a ‘written financial analysis’ when voting against company management. This follows similar outcomes in Kansas and Texas, signalling growing pushback against Republican state laws arguing that proxy firms favour shareholder resolutions focused on environmental and social topics, emboldening firms to continue with their current ESG assessment strategies. Reuters covers the news.
