Buckeye Reporter

Sunlight Energy, a subsidiary of Genie Energy Ltd., recently expanded its solar generation capacity with the acquisition of 9.4-MW in Ohio and Michigan. The transaction, which took place on November 28, marked the first time that Genie Energy has acquired operating solar assets as part of its strategy to enhance its environmental, social, and governance (ESG) investments.

Renewables Now reports that "Sunlight Energy was set up by Genie as an ESG investment focusing on equity financing for commercial and industrial (C&I) and community solar projects." This is a common trend among companies like Genie Energy that are seeking to boost earnings through renewable energy subsidies and ESG investing.

However, it's not just electric generation companies that are embracing ESG investing. Financial institutions are also making concerted efforts to transition their investment portfolios from fossil fuels towards renewable energy, battery storage, and electric vehicles. Morgan Stanley is one such institution. James Gorman, the company's CEO and chairman, stated that they have "established the Morgan Stanley Institute for Sustainable Investing to lead work across our firm, with our clients, and with academic institutions to help mobilize capital to sustainable enterprises."

Despite these advancements in ESG investing, some states are pushing back due to perceived economic harm. BloombergNEF reports that while Ohio is not among these states, three of its neighboring states—Indiana, Kentucky, and West Virginia—have enacted laws potentially penalizing financial institutions promoting ESG investing.

Oklahoma has taken similar measures. Recently it released a list of financial institutions believed to be boycotting oil and gas companies. According to the Oklahoma state treasurer's office, institutions on this list "may be excluded from doing business with the state." BlackRock, Wells Fargo, JPMorgan Chase and Bank of America were among those listed.

In October, Texas Attorney General Ken Paxton issued enforcement guidance for Texas laws prohibiting public contracts with businesses that maintain ESG policies in violation of state law. According to the comptroller's office, companies identified as violating the law through energy company boycotts include Blackrock, Credit Suisse Group AG, UBS Group, and HSBC Holdings PLC.

BloombergNEF notes that currently 15 states have enacted laws pushing back against ESG investing, with "over a dozen [states planning] similar moves." Only Maine, Maryland, Illinois, Colorado, and California currently have pro-ESG laws in place.

The Buckeye Reporter indicates that the number of solar farms resulting from the ESG push is increasing. The Supreme Court of Ohio recently ruled in favor of two solar farms in Preble County proceeding with construction. This decision upheld an earlier ruling by the Ohio Power Siting Board.

While Ohio has not passed any statewide laws supporting ESG investing, some local governments have done so. For instance, Mount Vernon's city council recently adopted its "Sustainable2050" resolution—a program of the Mid-Ohio Regional Planning Commission (MORPC). As reported earlier, two objectives of MORPC’s Regional Sustainability Agenda are to increase local renewable energy generating capacity and reduce regional greenhouse gas emissions.