Break up the giants of ESG investing

Three of the largest investment stores in the United States – BlackRock, Vanguard and State Street – have long used their dominance in passive investment funds to force companies to comply with their preferred set of environmental, social and governance. Their reign, however, may be coming to a rightful end, as US law enforcement wakes up to the threats the Big Three pose to investors and the economy.

In an August 4 letter to the CEO of BlackRock Larry Finck, 19 state attorneys general questioned how the company’s ESG advocacy aligns with its fiduciary duties to investors. The attorneys general specifically questioned whether BlackRock’s “coordinated conduct with other financial institutions” — meaning the other two investment giants — to demonetize the oil and gas industry raises potential antitrust concerns. .


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