Tennessee files lawsuit against BlackRock over alleged misleading ESG strategy

The state of Tennessee has filed a lawsuit against BlackRock, accusing the asset manager of breaching consumer protection laws by making "misleading" statements about its ESG investment strategies. Tennessee alleges that BlackRock downplayed the impact of ESG considerations on its investment strategies and their effect on companies' financial performance. BlackRock has denied the claims, stating that it accurately discloses its investment practices. This lawsuit comes as Republican state attorneys general have been scrutinizing asset managers' handling of environmental and social issues, while Democrats, including President Joe Biden, have supported the incorporation of ESG factors in investment decisions.