NASHVILLE — Tennessee Attorney General Jonathan Skrmetti has filed what he said is a first-of-its-kind lawsuit against investment giant BlackRock, charging the firm is harming consumers by being socially conscious.
The lawsuit alleges the firm is considering the public good when it comes to environmental, social and corporate governance matters — rather than just considering investment returns. Proponents of socially conscious investing say it’s more sustainable than investing without social considerations.
“We allege that BlackRock’s inconsistent statements about its investment strategies deprived consumers of the ability to make an informed choice,” Skrmetti said in a statement this week. “Some public statements show a company that focuses exclusively on return on investment. Others show a company that gives special consideration to environmental factors.
“Ultimately,” the Republican attorney general added, “I want to make certain that corporations, no matter their size, treat Tennessee consumers fairly and honestly.”
BlackRock isn’t buying it.