Titan asset manager BlackRock has gained a reputation for its embrace of Environmental, Social, and Governance (ESG) considerations in its investment strategies.
While some states have elected to push back on BlackRock’s methodologies by divesting their pension funds from the investment management firm, Tennessee is taking a novel approach: In a first-of-its-kind lawsuit filed Monday, Tennessee Attorney General Jonathan Skrmetti is suing BlackRock under the state’s Consumer Protection Act, alleging that the firm’s inconsistent and misleading statements regarding its investment strategies constitute deceptive practices and seeking both injunctive relief and civil damages.
As noted in the Civil Enforcement Complaint, BlackRock seems to be trying to have it both ways: While aggressively pushing ESG and committing to activist organizations like Climate Action 100+ and the Net Zero…
