Tennessee Lawsuit Against BlackRock Over ESG Role Ends In Settlement

BlackRock and the state of Tennessee have settled a lawsuit claiming the firm misrepresented the influence of environmental, social, and governance (ESG) proposals on its investment strategy.

The lawsuit, filed in 2023, alleged that BlackRock downplayed ESG factors in its investment decisions. As part of the settlement, BlackRock agreed to increased transparency, regular audits, compliance training, and better investor communication. Tennessee’s Attorney General Jonathan Skrmetti emphasised that the settlement ensures retirement funds will not support ideologies opposed by the state. While BlackRock denied any wrongdoing, the settlement did not result in penalties or fines. This agreement follows other legal challenges targeting ESG investing, with Republican-led states continuing to push back against such strategies.