BlackRock Accused by Tennessee of ‘Misleading’ ESG Strategy (2)

Tennessee sued BlackRock Inc. for allegedly breaching consumer protection laws by making “misleading” statements about its ESG investment strategy.

State Attorney General Jonathan Skrmetti said BlackRock funds that don’t take into account ESG factors are being unfairly impacted by the asset manager’s membership in climate groups, its shareholder-voting record and the pressure it puts on companies to meet environmental goals, according to a complaint filed Monday in state court. This shows a “pattern of deception” that has hurt investors, the complaint says.

“BlackRock has engaged in a series of unlawful ESG-related misrepresentations and omissions in connection with the marketing or ...