Texas sends letter opposing financial firm DEI policies (2025)
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Ten states, led by Texas, have requested information from BlackRock, Goldman Sachs, and others regarding their diversity, equity, and inclusion (DEI) policies. The Jan. 23 letter argued business and investment decisions based on race, sex, and other diversity criteria could violate financial firms’ fiduciary duty to focus on maximizing shareholder value.
Texas and other states have previously focused their opposition against environmental investing considerations. This letter shifts to opposing the social aspects of ESG.
According to Pensions & Investments:
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Texas Attorney General Ken Paxton wrote on Jan. 23 to the firms saying they appear “to unlawfully advance discriminatory” diversity, equity and inclusion efforts, and demanded they respond to a series of questions about their programs. He said the firms may have breached their fiduciary duties by pursuing an “ulterior political motive or agenda.” The letter was sent to Goldman Sachs Group Inc., Morgan Stanley, J.P. Morgan Chase & Co., Bank of America, Citigroup and money manager BlackRock. “You appear to have embraced race- and sex-based quotas and to have made business and investment decisions based not on maximizing shareholder and asset value, but in the furtherance of political agendas,” Paxton said in a letter obtained by Bloomberg.[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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