BlackRock Inc., Vanguard Group Inc. and State Street Corp. were sued by states, led by Texas, over alleged violations of antitrust laws Increase electricity prices through investmentthe most high-profile lawsuit to date against the embattled ESG industry. [emphasis, links added]
Texas Attorney General Ken Paxton and 10 other states claim that money managers have combined their market influence and climate group memberships to pressure coal producers to cut production.
Electricity shortages are causing Texans and residents in other states to pay higher electricity bills, according to a lawsuit filed Wednesday in federal court in Texas.
Republican-led states, including West Virginia and Montana, asked the court Ban the three largest U.S. fund management companies from using their shares in coal companies to vote on shareholder resolutions and take other measures to limit output and limit market competition.
Spokespeople for BlackRock and Vanguard had no immediate comment on the lawsuit. State Street did not immediately respond to an email seeking comment.
The complaint marks the culmination of a years-long investigation by Republican officials into Wall Street's efforts to combat climate changea key pillar of environmental, social and governance (ESG) strategy.
Since last year, state attorneys general have warned investment firms: Americans’ savings should not be used to “advance political goals” during shareholder voting season.
In this regard, climate advocates say that environmental risks are also financial risks and that addressing these risks is one of the fiduciary responsibilities of investors.
Paxton accuses investment firms of collaborating to reduce coal production across the industry, leading to higher energy prices for U.S. consumers.
He cited the Clayton Antitrust Act, a 1914 federal law that prohibits stock purchases, thereby significantly reducing competition.
The lawsuit alleges that BlackRock, Vanguard Group and State Street used their stakes in coal companies such as Peabody Energy Corp. and Archie Resources Inc. to pressure management to reduce carbon emissions.
The program begins in 2021 as part of the investment firm joining groups such as Climate Action 100+ and the Net Zero Asset Management Initiative.
efficient, The companies formed “a consortium and agreed to use their collective shares in listed coal companies to induce industry-wide production cuts.” according to the lawsuit.
Read more at The Dallas Morning News
