The next round of the ESG fight should start in Congress, not in court

illuminem summarizes for you the essential news of the day. Read the full piece on The Hill or enjoy below:

🗞️ Driving the news: In 2023, state legislative sessions saw approximately 165 bills related to environmental, social, and governance (ESG) investment criteria
• A notable shift involves taking ESG issues to court, exemplified by Tennessee Attorney General Jonathan Skrmetti's lawsuit against BlackRock for allegedly making false ESG claims to consumers

🔭 The context: The lawsuit focuses on BlackRock's purported misrepresentations about ESG considerations in their investment strategies, referencing its involvement with the Net Zero Asset Managers Initiatives and Climate Action 100+
• This legal action could, if successful, increase costs for investors, impacting particularly retired Tennesseans negatively

🌍 Why it matters for the planet: The case highlights a growing tension between advancing ESG goals and the potential adverse effects on investors
• It also underscores the complex interplay between asset managers' fiduciary duties, ESG considerations, and the broader implications for sustainable finance and climate action

⏭️ What's next: This legal approach reflects a broader trend of using litigation to influence policy on climate change and ESG issues, potentially setting a precedent for how consumer protection laws are leveraged in environmental advocacy
• However, it raises concerns about the efficacy and appropriateness of resolving policy debates in court rather than through legislative processes

💬 One quote: A "first-of-its-kind” consumer lawsuit against BlackRock (General Jonathan Skrmetti, Tennessee Attorney)

📈 One stat: Approximately 165 bills related to ESG investment criteria were introduced in state legislatures in 2023
• This highlights the growing legislative attention towards integrating ESG debates into financial and investment decisions

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