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Eleven states sue asset managers, alleging antitrust violations (2024)
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| • What is ESG? • Enacted ESG legislation • Arguments for and against ESG • Opposition to ESG • Federal ESG rules • ESG legislation tracker • Economy and Society: Ballotpedia's weekly ESG newsletter |
Eleven Republican-led states on Nov. 27 sued BlackRock, Vanguard, and State Street—the Big Three passive asset managers—arguing the firms violated antitrust laws. The states said the firms' collective ESG engagement hurt coal production, raising consumer energy costs. The firms argued they operate independently and compete with one another.
BlackRock, Vanguard, and State Street hold large stakes in many publicly traded corporations. The firms used to participate in global agreements like Climate Action 100+, which require members to use their stakes to influence companies to reduce carbon emissions and move to alternative energy sources. The attorneys general said those agreements were anti-competitive and discriminatory against fossil fuel industries.
According to Reuters:
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Wednesday's complaint filed in the federal court in Tyler, Texas, is among the highest-profile lawsuits targeting efforts to promote environmental, social and governance goals, or ESG. The defendants were accused of exploiting their market power and involvement in climate advocacy groups to pressure coal companies to slash output and reduce carbon emissions from coal by more than 50% by 2030, driving up consumers' utility bills. 'Competitive markets -- not the dictates of far-flung asset managers -- should determine the price Americans pay for electricity,' the states said in the complaint.[1] |
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See also
- Environmental, social, and corporate governance (ESG)
- Economy and Society: Ballotpedia's ESG newsletter
External links
Footnotes
- ↑ Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source.
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