House Republicans investigate BlackRock and Vanguard’s ESG practices

Jim Jordan, the chairman of the House Judiciary Committee, and two other House Republicans sent letters to major players in the financial sector, such as BlackRock Inc., Vanguard Group Inc., and State Street, warning that their efforts to tackle climate change may be in violation of US antitrust law.

The legislators cautioned in the letters they sent on Thursday, July 6, that pledges to decarbonise their assets “and reduce emissions to zero” might “potentially have harmful effects on Americans’ freedom and economic well-being.” The letters, which demand the production of “relevant documents and information” within two weeks, were signed by Jordan, Representative Thomas Massie of Kentucky, and Dan Bishop of North Carolina.

Republicans on Capitol Hill and GOP presidential hopefuls have been increasingly critical of businesses that adhere to environmental, social, and governance investing, or ESG, principles. For instance, Florida Governor Ron DeSantis passed legislation prohibiting his state’s pension funds from making investments based on ESG criteria earlier this year.

According to a statement from BlackRock, “Finding the greatest financial results for our clients, consistent with their investment objectives, is our exclusive focus as a fiduciary. We look forward to discussing how we do that with the committee.