(Bloomberg) -- House Oversight Committee Chairman James Comer is seeking information from the Federal Reserve about whether some asset managers are breaching agreements with the central bank because of their links to climate-finance groups.

In a letter sent Monday to Federal Reserve General Counsel Mark Van Der Weide, Comer said the managers’ pledges on environmental, social and governance issues may suggest climate groups “control” their decisions, making the managers subject to regulation under the Bank Holding Act, the Home Owners Loan Act and the Change in Bank Control Act. 

The chairman said groups, including the Net Zero Asset Managers Initiative and Climate Action 100+, were created to coordinate talks with companies to compel them to cut greenhouse gas emissions and meet global climate goals. The groups’ requirements for their members “appear to manifest as control of a regulated company” that’s similar to definitions the Fed made in so-called determination letters dated November 2019 and December 2020, Comer said.  

In those letters, the Fed said an asset manager may purchase as much as 25% of any class of voting securities of a bank without being deemed to have control of the company under the BHC Act or HOLA. Holding a controlling stake could trigger a range of complicated and costly compliance requirements.

“These pledges also raise questions about whether other asset managers, who have not sought relief from the Federal Reserve Board, could be subject to the BHC Act, HOLA, and CIBC Act due to their concerted action with other asset managers,” Comer, a Republican from Kentucky, wrote. 

Comer said the committee is reviewing the use of ESG policies across the economy.

Financial firms have come under increased scrutiny from Republican politicians for their ESG efforts. Just last week, JPMorgan Asset Management and State Street Global Advisors left Climate Action 100+ amid the GOP backlash against the ESG strategy. Republican officials across the country have launched investigations into banks and asset managers, introduced anti-ESG laws and pulled money from firms such as BlackRock Inc.

Comer asked the Fed if it’s aware of pledges and actions taken by asset managers when granting them determination letters. He also inquired whether any of the asset managers alerted the Fed of their involvement with the groups after getting a determination letter and whether the central bank monitors activities of asset managers to see if their talks with companies trigger requirements under the BHC Act, HOLA and the Change in Bank Control Act. 

Comer also asked the Fed if they have an ongoing monitoring program.

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