Tennessee Attorney General Jonathan Skrmetti has filed a lawsuit against investment company BlackRock, accusing them of engaging in deceptive practices related to their environmental, social, and governance (ESG) goals. Skrmetti alleges that BlackRock's claims of maximizing returns on investment while simultaneously committing to net-zero carbon emissions are contradictory and misleading.

In the lawsuit, filed in Williamson County Circuit Court, Skrmetti argues that BlackRock's actions violate the Tennessee Consumer Protection Act. BlackRock has been at the forefront of the movement to impose climate-related goals on companies in the name of ESG. However, Skrmetti argues that the science on carbon emissions and their impact on the climate is far from settled, making such goals contentious.

BlackRock, while participating in climate advocacy groups such as Climate Action 100+ and the Net Zero Asset Managers Initiative, manages non-ESG funds that do not follow sustainable or impact investment strategies. The company maintains that these funds are not aligned with their ESG goals, but Skrmetti's lawsuit points out that BlackRock has a company-wide commitment to ESG and has pressured other companies it invests in to adopt climate-related commitments.

The lawsuit further alleges that BlackRock's influence on companies it invests in, including Chevron, United Airlines, and Walmart, has been used to push climate-related shareholder proposals. BlackRock, however, stated that it does not dictate emission targets or lobby specific political agendas to these companies. Skrmetti's lawsuit argues that BlackRock's claims about its role in guiding investment decisions and driving positive financial outcomes are contradictory.

The lawsuit also challenges BlackRock's assertion that a significant majority of governments have committed to achieving a net-zero global economy by 2050. Skrmetti's argument highlights that only a small percentage of countries have enshrined such commitments in law and that legally binding pledges cover only a fraction of global emissions.

Skrmetti seeks several outcomes from the lawsuit, including a declaration that BlackRock violated the Tennessee Consumer Protection Act, an order for BlackRock to cease making misrepresentations, and the restoration of any lost money or property resulting from the alleged violations. Additionally, Skrmetti requests a civil penalty of $1,000 per violation and for BlackRock to cover all costs related to the case.

BlackRock, the world's leading exchange-traded fund provider with $9.4 trillion in assets under management, faces this civil enforcement action as the first of its kind targeting ESG deception.

In an interview, Skrmetti emphasized the importance of clarifying the truth and protecting consumers. He highlighted concerns about decisions regarding how companies should conduct business being made by a select group of elites, aiming to limit the oversight of the American people over the economy.

As this legal battle unfolds, it could have significant implications for the ESG investment landscape, shedding light on the transparency and accountability associated with ESG goals and the potential impact on investor returns.

(This article is based solely on the provided information and does not include any additional details or opinions.)