The AG’s are investigating the corporation’s Environmental, Social and Governance ratings.
QUICK FACTS:
- Attorney General Paxton joined a multistate investigation being spearheaded by Missouri for possible consumer protection law violations at S&P Global Inc.
- According to the allegations of consumer fraud and dishonest business practices, state attorneys general are currently conducting their second investigation into a corporation that provides Environmental, Social and Governance (ESG) ratings.
- The press release from the attorney general’s office asserted that the line between subjective opinions and objective financial facts may be misleadingly blurred by S&P’s published ESG credit indicators, ESG ratings, and ESG evaluations. These factors appear to politicize what should be a strictly financial decision.
- Paxton joined a multistate investigation into Morningstar, Inc. and Sustainalytics for alleged violations of anti-boycott, divestment, and sanctions (BDS) and consumer protection laws.
- In a letter to BlackRock CEO Larry Fink, Attorney General Paxton criticized the firm’s decision to manage state pension funds using ESG investment criteria rather than shareholder earnings.
PAXTON’S STATEMENT:
- “Too many consumers and investors have been hurt by the woke ESG movement’s obsession with radical social change and willingness to ignore the law,” said Attorney General Paxton.
- “We’re investigating S&P Global to find out if they’ve engaged in the types of destructive, illegal business practices that are so pervasive in the ESG movement. If so, they will have to answer for their actions.”
BACKGROUND:
- This investigation addresses similar concerns to those who believe a community-style “social credit system” could be coming to the United States.
- Some state lawmakers are raising the concern that the United States may be following China in imposing behavioral ratings on its population as new technology is developed to analyze people’s conduct and compile environmental and social credit scores.
