ESG & Investing
BlackRock Accused by Tennessee of ‘Misleading’ ESG Strategy
- The state claims BlackRock breaches consumer protection laws
- BlackRock said it will contest Tennessee’s accusations
BlackRock headquarters in New York.
Photographer: Michael Nagle/BloombergThis article is for subscribers only.
Tennessee sued BlackRock Inc. for allegedly breaching consumer protection laws by making “misleading” statements about its ESG investment strategy.
State Attorney General Jonathan Skrmetti said BlackRock funds that don’t take into account ESG factors are being unfairly impacted by the asset manager’s membership in climate groups, its shareholder-voting record and the pressure it puts on companies to meet environmental goals, according to a complaint filed Monday in state court. This shows a “pattern of deception” that has hurt investors, the complaint says.