Climate First Bank Founder & CEO, Ken LaRoe, sends this letter to Allison Ball in response to Kentucky Treasurer's recent announcement to divest from 11 banks,

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Dear Treasurer Ball,

My name is Ken LaRoe, Founder & CEO of Climate First Bank, the world’s first FDIC insured community bank founded to combat the climate crisis. 

Your recent press release, whereby you explained your intent to divest from banks that have “boycotted” energy companies, was brought to my attention. I felt compelled to reach out to you, as Climate First Bank featured on your blacklist, and because of your fraudulent claim that ESG and financial institutions prioritizing preserving our planet are dangerous to Kentucky.  

It is disappointing to hear Republicans, like yourself, choose to weaponize Environmental, Social, and Governance (ESG) and politicize Corporate Social Responsibility (CSR). Government and corporations nationwide (and worldwide) have reaped the benefits of incorporating ESG, contrary to the partisan statement that “ESG-focused investing sacrifices returns”. For instance, BlackRock has had the 5-highest ranked returns for the state of Florida amongst its 12 external managers, yet they have been blocked both by you and the Comptroller in the State of Florida for boycotting the fossil fuel industry.  

Climate First Bank has recognized from day one that a forward-looking approach and rapid action are necessary to halt the climate crisis whilst generating sustainable, profitable financial outcomes in the long-term. This premise has not only led us to become the fastest-growing new bank in the country since 2017 but also enabled the bank to have a higher profile compared to similar banks our size (for instance, because of your dictum last week, Climate First Bank garnered attention worth an estimated $2 million in ad value).  

Your short-sighted and partisan decree is harmful to your constituents and provides false hope that your state's downtrodden fossil fuel industry will rebound. According to Kentucky Energy and Environment Cabinet, since 2012, coal production in Kentucky has decreased by over 92%, and it’s not coming back. It is time that your state focuses on the future: clean energy and a green economy. Ultimately, ESG is not a partisan issue; if it’s not incorporated into your economic decisions, your state will get left behind.

Climate First Bank currently does not do business in Kentucky, but we will, and many of the like-minded financial institutions you have placed on your “blacklist” already do.  

To be clear, this blacklisting will not harm the financial institutions you have listed nor undermine the interweaving of ESG factors into investment decision-making. However, this blacklisting will have real consequences for your state and taxpayers.

Sincerely,  

Ken LaRoe

Founder & CEO

Climate First Bank

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