BlackRock faces potential legal issues from state AGs.

State Attorneys General Challenge BlackRock’s Ability to Buy Large Stakes in Public Utility Companies

Conservatives have been successful in their ongoing efforts to gut woke ESG policies in order to protect investors’ financial wellness. More than a dozen state attorneys general have challenged BlackRock’s ability to snap up stock in public utility companies, citing concerns over the company’s membership in Climate Action 100+ and Net Zero Asset Managers Initiative.

BlackRock’s Pledges to Climate Action 100+ and NZAM

BlackRock has pledged to work with the companies in which they invest to minimize and disclose risks and maximize opportunities presented by climate change. As a signatory to the NZAM, BlackRock has agreed to accelerate the transition towards global net zero emissions and support the goal of net zero greenhouse gas emissions by 2050. However, these goals may undercut profits and ROI, ultimately driving up the cost of energy and causing general economic damage.

State Attorneys General Challenge BlackRock’s Ability to Buy Large Stakes in Public Utility Companies

On Wednesday, Indiana Attorney General Todd Rokita led a group of attorneys general in filing a motion with FERC to challenge BlackRock’s ability to snap up large stakes in public utility companies. The AGs filing to intervene asked FERC to ensure that BlackRock abstains from imposing ESG priorities on the energy companies in its holdings. Otherwise, the filing argues, BlackRock should not receive advance blanket authorizations from FERC to acquire more than $10 million in voting securities in utility companies.

Protecting American Energy Consumers from Wall Street’s Reckless Interference

Will Hild, the executive director of Consumers’ Research and a leader in the anti-ESG, pro-investor movement, remarked that it’s great to see state attorneys general taking steps to protect American energy consumers from Wall Street’s reckless interference. Affordable, reliable energy production is the cornerstone of our economy, and Americans’ quality of life depends on energy access. FERC must protect these utilities from blatant and reckless interference by BlackRock and others like it.

Building Momentum Against ESG-Pushing Firms

Previously, a group of 13 state attorneys general filed a similar motion with FERC against Vanguard, another ESG-pushing asset manager, in November 2022. By December, the second-largest asset management firm announced it had defected from the Net Zero Asset Managers Initiative in what became a very bad day for the ESG crowd. Time will tell whether Wednesday’s filing will have the same speedy success in getting BlackRock to withdraw from NZAM, but it’s another step building on the momentum of other victories against ESG-pushing firms.