The Climate War Intensifies In The USA As Texas Goes On The Offensive Against Blackrock
Texas leads a charge of 11 Republican states as they unite against BlackRock
Texas, leading a coalition of 11 Republican-led states, has filed a federal antitrust lawsuit against major asset management firms BlackRock, State Street, and Vanguard. The suit alleges that these financial giants conspired to reduce coal production to advance environmental, social, and governance (ESG) objectives, resulting in higher energy prices and diminished competition in the coal industry.
Texas Attorney General Ken Paxton criticised the firms for allegedly using their substantial holdings in coal companies to pressure these entities into cutting output, thereby artificially constraining energy supplies and driving up costs for consumers. He stated, “Texas will not tolerate the illegal weaponisation of the financial industry in service of a destructive, politicised environmental agenda.”
The lawsuit also scrutinises the firms’ participation in initiatives like the Net Zero Asset Managers Initiative and Climate Action 100+, suggesting that such affiliations indicate a coordinated effort to limit coal production. Notably, Vanguard exited the Net Zero Asset Managers Initiative in 2022, and both BlackRock and State Street’s American arm withdrew from Climate Action 100+ earlier this year, citing legal concerns.
In response, BlackRock contended that the allegations are “baseless and defy common sense,” emphasising that their investment strategies aim to benefit the companies involved, not harm them. The firm warned that the lawsuit could undermine Texas’s pro-business reputation and deter future investments.
Sounds like a win win either way for Texas and friends. BlackRock needs to be put it its place.
This legal action is the latest in a series of moves by Republican officials against what they term “woke capitalism.” Earlier this year, the Texas Permanent School Fund divested $8.5 billion from BlackRock, accusing the firm of boycotting energy companies through its ESG policies.
The outcome of this lawsuit could significantly impact the intersection of financial management and environmental policy, potentially reshaping how asset managers incorporate ESG factors into their investment decisions. As the case progresses, it will serve as a critical indicator of the evolving relationship between state governments and financial institutions concerning ESG considerations.
If Texas and friends are successful, perhaps we can replicate something similar in the UK considering we are world leaders in electricity prices! Someone, somewhere, is making insane amounts of money fleecing the UK in every way possible but we don’t have to live like this. We don’t have to destroy our incredible society in the name of Net Zero!
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