Earlier this month, Arizona Attorney General Mark Brnovich wrote an op-ed in The Wall Street Journal announcing that he will open an investigation into ESG policies and groups like Climate Action 100+ for attempting to manipulate markets in favor of green energy and climate agendas.
In the op-ed, Brnovich pointed out that ESG could be an anti-trust violation. He also wrote in the piece that Wall Street banks and money managers continue to take part in efforts to thwart investments in oil, gas and other traditional energies.
“The biggest antitrust violation in history may be in plain sight," Brnovich wrote in the op-ed piece.
Texas Lt. Gov. Dan Patrick has already called for the state to cease doing business with BlackRock over its ESG policies, and Texas Comptroller Glenn Hegar sent letters to companies earlier this week requesting investment policy clarifications.
In the piece, Brnovich, who is a Republican, noted that the largest banks and money managers are seeking implementation and compliance of green agenda items, such as the Paris Climate Accord, and groups such as Climate Action 100+, which control trillions of dollars, can exert their influence.
“The activism can include pushing climate goals at shareholder meetings and voting against directors and proposals that don’t comport with the agenda, even if other decisions may benefit investors,” he wrote in The Wall Street Journal.
Brnovich continued in the op-ed by pointing out that geopolitical issues, such as the ongoing war between Russia and Ukraine, should remind everyone just how important energy independence can be, considering it can be connected to national security. Moreover, he wrote that the U.S. should not have to turn to dictators for energy, and resulting price increases can impact lower-wage workers the most.
“While climate activists believe they know best … international tensions heighten the need for domestic companies to maximize efficiency and productivity,” Brnovich wrote in the op-ed. “Proper corporate governance is good not only for shareholders but for the stability of America and the world.”
Climate Action 100+, noted on its website that it includes 617 global investors who are responsible for at least $65 trillion in assets in 33 markets. Those investors are signatories to the initiative who publicly support its goals, though they don’t have any direct participation in focus corporations, according to the website.
Patrick, who also is a Republican, is urging Texas to cut ties with BlackRock, a U.S-based international investment management firm, over its position on energy, according to Texas Business Daily. He said the company has an agenda that targets oil and gas.
The Austin Journal reported that Hegar recently noted that more than 20 firms may have violated Texas’ Oil and Gas Protection Act, and he has sent them letters seeking a clarification of fossil fuel investment policies, as well as requesting lists of any folios that may restrict investments in traditional energies.