Daniel Cameron, the Attorney General of Kentucky, recently issued a legal brief addressing the usage of money by investment management firms.
The issue discussed in the legal brief was “Whether ‘stakeholder capitalism’ and ‘environmental, social, and governance’ investment practices in connection with the investment of public pensions funds are consistent with Kentucky law governing fiduciary duties.” The opinion was sought out by Kentucky Treasurer Allison Ball, who asked if “whether those asset management practices are consistent with Kentucky law.” Cameron said that they were not.
“There is an increasing trend among some investment management firms to use money in public and state employee pension plans—that is, other people’s money—to push their own political agendas and force social change,” Kentucky Attorney General Daniel Cameron stated in a May 26 legal opinion.
Kentucky joins Texas in a focus on ESG policies and how they effect the residents in their state. Texas Comptroller of Public Accounts Glenn Hegar on March 16 wrote almost 20 firms to let them know that they may have broken the state’s Oil & Gas Protection Act. He is asking them to clarify their fossil fuel investment policies and show a list of portfolio funds that prevent or restrict investment in fossil fuels.
The Austin Journal asserted that the 19 companies to receive letters from Hegar are Abrdn, PLC; BlackRock; BNP Paribas; Credit Suisse Group AG; Danske Bank A/S; HSBC Holdings PLC; Invesco, Ltd.; JPMorgan Chase & Co.; Jupiter Fund Management, PLC; Man Group, PLC; NatWest Group, PLC; Nordea Bank Abp; Rathbones Group, PLC; Schroders, PLC; Sumitomo Mitsui Trust Holdings, Inc.; Svenska Handelsbanken AB; Swedbank AB; UBS Group AG and Wells Fargo & Company.
“BlackRock is capriciously discriminating against the oil and gas industry by exiting investments solely because companies do not subscribe to a ‘net zero’ policy beyond what is required by law” Texas Lt. Governor Dan Patrick said of BlackRock and the companies.
