BlackRock, Inc. has settled a dispute with Tennessee over its ESG practices, which the state said misled consumers.
Attorney General Jonathan Skrmetti filed a consumer protection lawsuit against the investment firm in December 2023. The state accused BlackRock of failing to tell investors how much environmental, social, and governance considerations had been incorporated into its investment strategies. The alleged misrepresentation "deprived consumers of the ability to make an informed choice," Skrmetti said.
ESG is an acronym used in conjunction with environmental, social, and governance policies in investments.
BlackRock agreed to increase its disclosure of proxy voting practices and to a third-party audit to show it is complying with the state's terms.
