Texas and 10 other states have sued BlackRock, Vanguard and State Street, alleging that the firms conspired to manipulate coal markets, violating federal and state antitrust laws. The lawsuit accuses the companies of artificially reducing coal supply, inflating energy prices and harming American consumers.
The lawsuit, filed in federal court in Texas, claims the firms used their significant ownership in coal producers to push ESG policies, prioritizing environmental goals over market competition. According to the suit, these practices created higher utility costs while generating profits for the companies.
Texas Attorney General Ken Paxton stated, “These firms coordinated their actions to depress energy production and impose higher costs on American families.” The lawsuit also accuses the companies of misleading investors who were unaware of the extent of ESG strategies being applied to their funds.
Programs like Climate Action 100 and Net Zero Asset Managers Initiative are cited as tools used by the companies to enforce coal production cuts. The suit alleges that these initiatives were part of a coordinated effort to manipulate energy markets.
The states involved are seeking financial penalties and measures to stop future anticompetitive practices. The lawsuit also calls for the court to prohibit the firms from using their ownership stakes to influence coal production policies.
This legal action follows broader efforts by Republican-led states to challenge the influence of ESG policies in the energy sector. It reflects growing resistance to what critics view as politically motivated interference in free-market systems.
