Tags: blackrock | environmental | social | governance | esg | tennessee

Tennessee Sues BlackRock for 'Misleading' ESG Strategy

Tennessee Sues BlackRock for 'Misleading' ESG Strategy
(AP)

Monday, 18 December 2023 02:06 PM EST

The U.S. state of Tennessee has sued BlackRock on allegations the world's largest asset manager breached consumer protection laws by making "misleading" statements about its environmental, social and corporate governance (ESG) investment strategy, Bloomberg News reported Monday.

The report, citing a complaint filed in state court, said BlackRock funds that do not take into account ESG factors are being unfairly impacted by membership in climate groups, its shareholder-voting record and the pressure it puts on companies to meet environmental goals.

"We reject the Attorney General's claims and will vigorously contest any accusations that BlackRock violated Tennessee's consumer protection laws. Contrary to the Attorney General's claims, BlackRock fully and accurately discloses our investment practices and our approach to proxy voting," BlackRock said in an emailed statement to Reuters.

The Tennessee AG's office did not immediately respond to a Reuters request for comment.

Earlier this year, Tennessee's AG Jonathan Skrmetti had demanded ten major asset managers provide information over how they seek to tackle climate change, as part of an investigation into potential breaches of consumer law.

Skrmetti and 20 other Republican state attorneys general also wrote to asset managers in March suggesting they are breaching their fiduciary duties in their handling of environmental or social issues.

Companies and investors increasingly consider factors such as climate change and workforce diversity, which they say can affect company performances and reputations. The approach has received backing from Democratic leaders, including U.S. President Joe Biden, who used his first veto of his presidency to defend a rule on ESG investing.

Meanwhile, Republicans, many from energy-producing states, have joined a growing chorus challenging ESG.

© 2024 Thomson/Reuters. All rights reserved.


StreetTalk
The U.S. state of Tennessee has sued BlackRock on allegations the world's largest asset manager breached consumer protection laws by making "misleading" statements about its environmental, social and corporate governance (ESG) investment strategy, Bloomberg News reported.
blackrock, environmental, social, governance, esg, tennessee
268
2023-06-18
Monday, 18 December 2023 02:06 PM
Newsmax Media, Inc.

Sign up for Newsmax’s Daily Newsletter

Receive breaking news and original analysis - sent right to your inbox.

(Optional for Local News)
Privacy: We never share your email address.
Join the Newsmax Community
Read and Post Comments
Please review Community Guidelines before posting a comment.
 
Get Newsmax Text Alerts
TOP

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved
NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved