A coalition of 21 state attorneys general sent a tough letter to dozens of financial institutions and asset managers warning them against ESG labor initiatives.
The letter has been sent to 53 of the nation’s largest financial institutions, which collectively manage trillions of dollars in assets.
In the statement, obtained by foxnewsThe attorney general has threatened legal action if firms decide to push social priority without keeping their clients’ best interests at the forefront.
It was sent to New York-based BlackRock bank, which was already under fire, as well as Franklin Templeton, Goldman Sachs, HSBC, Invesco, JP Morgan, State Street and dozens of other asset managers.
The move, spearheaded by Montana Attorney General Austin Knudsen, comes ahead of the season when companies hold annual shareholder meetings where they will vote on key policy initiatives.
The measure is led by Montana Attorney General Austin Knudsen, and the states send the letter to 53 of the nation’s largest companies.
Speaking to Fox, Knudsen said: “This ESG nonsense is seeping into a lot of our states and the way they’re doing it is very, very concerning and probably flagrantly illegal.”
“Pulling it through these asset managers and these proxy votes is extremely concerning.”
The message is: stay in your lane and do what you’re supposed to do. You have a fiduciary duty under our various state laws to maximize your investment. That’s your job.
That’s what you’re supposed to do. We are aware of state law and will, if necessary, defend our state retirees against anything that strays from that lane.
In addition to Montana, AG for Alabama, Arkansas, Georgia, Idaho, Indiana, Iowa, Kansas, Kentucky, Louisiana, Mississippi, Missouri, New Hampshire, Ohio, South Carolina, Tennessee, Texas, Utah, Virginia, West Virginia, and Wyoming all co They signed the letter.
In the letter, the states argued that large asset managers used client assets to change companies’ behavior to align with ESG standards.
It stated: ‘You are…not only required to follow the general laws discussed above, but also have broad responsibilities under federal and state laws governing securities.
“Broadly speaking, those laws require you to act as a fiduciary, in the best interest of your clients and by exercising due care and loyalty.”
Larry Fink, chief executive of the world’s largest asset management firm, BlackRock, is accused of pursuing a “political agenda” through his company’s commitment to environmental, social and governance (ESG) investing.
“Simply put, you are not the same as a political or social activist and you should not allow the vast savings entrusted to you to be seized by activists to further non-financial goals.”
They took particular issue with practices driving aggressive climate policies that critics say would cripple the fossil fuel industry and drive up consumer energy prices.
He also highlighted that asset managers participate in Climate Action 100+ and have joined the Net Zero Asset Managers Initiative (NZAM).
Both associations require members to make certain climate commitments.
Knudsen added that he was concerned that ESG policies would ultimately hurt Montana residents by reducing their energy options and raising prices.
He told Fox News Digital: ‘Montana is a northern state. It’s very, very cold. We cannot warm our homes with rainbows and pixie dust.
Most Republicans disapprove of environmental, social and governance (ESG) funding for private sector retirement plans like 401ks. The Republican Party claims that it promotes ‘wake-up’ policies like climate change initiatives and is not the best value for consumers. Biden hoped to veto the bill.
“That’s basically what we’re talking about here when we talk about solar or wind power. When it’s 40 below zero in February in Montana, the sun doesn’t shine and the wind doesn’t blow.
We have a million people to keep warm. So we have to have reliable power. And Montana is an energy producing state.
‘We produce oil, we produce natural gas and we produce the highest quality coal in the world. So, I mean, to me, that’s a no-brainer.
It comes after DeSantis joined 18 other red states in fighting corporate virtue signaling and the “wake-up.”
All 19 governors signed a joint statement declaring: “Once again, President Biden put his political agenda ahead of the well-being and individual liberties of American workers.”
Calling themselves ‘freedom-loving states’, the governors pledge to use pension funds in their respective states to force corporations to maximize shareholder value rather than further ‘wake up ideology’.
It comes after DeSantis joined 18 other red states in fighting corporate virtue signaling and the “wake-up.”
In an opinion piece, DeSantis explained that ESG is generally only employed for a few reasons: whether those who work at the top of corporations want to push their agenda or one that benefits them, or are caving in to the will of workers who want to your employer to reflect your values.
In his new book The Courage to Be Free: Florida’s Blueprint for America’s Revival, the potential 2024 presidential candidate called for “crippling the ESG movement.”
Desantis is seen as one of the biggest fighters against ESG considering his ‘war with Disney’.
The governor said he was warned not to take on the powerful Florida company but plunged headlong into a war with Walt Disney World after the then-CEO released a statement opposing his laws. that gave parents more power in the education of their children.
Congress passed legislation to try to keep politics out of Americans’ retirement funds, which Biden has openly opposed.