FRANKFORT, Ky. (March 31, 2023) – Attorney General Daniel Cameron joined a coalition of 21-states in sending a letter warning the nation’s largest asset managers not to push Environmental, Social, and Governance (ESG)-related investments as annual shareholders’ meetings begin for many public companies.
“Sacrificing quality financial returns to advance the radical climate agenda of the Biden Administration is unacceptable,” said Attorney General Cameron. “I joined this letter to asset managers to ensure that the retirement dollars of hard-working Kentuckians are not used as a political pawn.”
In their letter, the attorneys general express concern that asset managers may push the political goals of Climate Action 100+ and the Net Zero Asset Managers Initiative rather than act in the financial interests of their clients, which is their legal obligation. They write, “Your companies are some of the largest asset managers in the United States, collectively controlling trillions of dollars of investments. You should not be allowing the vast savings entrusted to you to be commandeered by activists to advance non-financial goals.”
The coalition reminds the money managers of their extensive legal duties under federal and state law and commits to being a watchdog against political activism in the financial sector. The attorneys general warned, “We will continue to evaluate activity in this area in line with our ongoing investigations into potential unlawful coordination and other violations that may stem from the commitments you and others have made as part of Climate Action 100+, Net Zero Asset Managers Initiative, or the like.”
This is Attorney General Cameron’s latest effort to protect the pensions and retirement assets of Kentuckians. In 2022, Attorney General Cameron released the first opinion in the nation on ESG investment practices. Earlier this year, he joined attorneys general in challenging the ESG investment recommendations of two proxy advisory companies and a Department of Labor rule that allows asset managers to make investment decisions based on non-monetary factors.
Attorney General Cameron was joined by attorneys general from Alabama, Arkansas, Georgia, Idaho, Indiana, Iowa, Kansas, Louisiana, Mississippi, Missouri, Montana, New Hampshire, Ohio, South Carolina, Tennessee, Texas, Virginia, West Virginia, Utah, and Wyoming in sending the letter.
To read a copy of the letter, click here.