Texas joins investigation over S&P’s use of ESG in credit ratings (2022)
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On September 28, Texas Attorney General Ken Paxon (R) announced that he and his state had joined in a multi-state investigation of S&P and its use of ESG factors in creating credit ratings, an issue that was first highlighted in April by Utah Treasurer Marlo Oaks (R). The press release from Paxon’s office read as follows:[1]
“Attorney General Paxton joined a Missouri-led multistate investigation into S&P Global Inc. for potential violations of consumer protection laws. This is the second investigation by state attorneys general into a company providing Environmental, Social, and Governance (ESG) ratings, based upon alleged consumer fraud and deceptive trade practices.
"S&P’s published ESG credit indicators, ESG scores, and ESG evaluations appear to politicize what should be a purely financial decision and may deceptively confound the distinction between subjective opinions and objective financial facts.
“'Too many consumers and investors have been hurt by the woke ESG movement’s obsession with radical social change and willingness to ignore the law,' said Attorney General Paxton. 'We’re investigating S&P Global to find out if they’ve engaged in the types of destructive, illegal business practices that are so pervasive in the ESG movement. If so, they will have to answer for their actions.'”
See also
- Environmental, social, and corporate governance (ESG)
- Economy and Society: Ballotpedia's ESG newsletter
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