Nebraska, Iowa AGs join lawsuit accusing investment firms of colluding to promote ‘green energy’

On November 30, 2024By Littum

LINCOLN, Neb. (WOWT) – Attorneys General in Nebraska and Iowa are joining an antitrust lawsuit against some of the largest financial firms in the world.

The 11 Republican-led states say the investment companies are artificially restricting the coal industry for financial gain. Texas, Alabama, Arkansas, Indiana, Kansas, Missouri, Montana, West Virginia and Wyoming have also signed on.

The Texas-led lawsuit deals with environmental, social and governance investment obligations, known as ESG. It refers to a method of investing in a socially responsible and sustainable way.

But the lawsuit filed by the states accuses several large institutional investment firms of using ESG as and excuse to artificially restrict the market for coal.

Nebraska AG Mike Hilgers says Blackrock, State Street Corp. and Vanguard has acquired significant stakes in every listed coal producer in the country. It gives the investment giants the power to control the companies’ corporate policies.

Hilgers argues that power allows companies to significantly reduce competition and achieve “cartel-level profits.”

In a statement Wednesday, Hilgers said, “The radical climate agenda is hurting Nebraskans. … Nebraska’s energy sector relies on coal, and these ESG deals make coal-based power more expensive and raise the price of electricity for end users.”

Iowa AG Brenda Bird said the “green plan” by “woke Wall Street” is hurting farmers.

“What ‘net zero’ really means is no beef cattle or dairy cows, no fertilizer to grow crops and no family farms. Families are saddled with high electricity and grocery bills,” she said in a statement Wednesday.

Blackrock said in a statement Wednesday that the allegations are baseless and defy common sense. State Street and Vanguard did not immediately comment on the lawsuit.

Climate activists argue that the environmental risks of fossil fuels are equal to economic risks, and managing them is the responsibility of the investment industry.