Republican attorneys general from 21 states sent a letter to asset managers warning them about their approach to environmental, social and governance factors ahead of shareholder votes at this year’s corporate annual meetings.
The March 30 letter, which was posted online Friday and led by attorneys general including Utah’s Sean Reyes and Montana’s Austin Knudsen, was sent to 53 of the top US asset managers including BlackRock Inc., State Street Corp, and JPMorgan Chase & Co.
The letter notes that proposals on topics including abortion and political spending are ramping up this proxy season. The attorneys general said voting for “political proposals would prioritize political goals over financial interests, which could violate fiduciary duties.”
Asset managers will “have to choose between their legal duties to focus on financial return, and the policy goals of ESG activists,” the Republican officials wrote.
BlackRock declined to comment. State Street and JPMorgan Chase didn’t provide a comment in time for publication.
The move is the latest Republican attorneys general have made in an effort to curb asset managers and others including the Securities and Exchange Commission from ESG considerations. In August, many of the attorneys general sent a similar letter to BlackRock.
The March 30 letter also said that many asset managers have already “committed to take actions inconsistent” with their clients’ financial interests, for example by joining the Net Zero Asset Managers Initiative, which seeks to lower global emissions.
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