A federal lawsuit claims that major investment firms, including BlackRock, Vanguard, and State Street, have reduced coal production on purpose, causing energy prices to rise. The goal, according to the lawsuit, is to lower global carbon emissions.
Eleven Republican attorneys general, including Montana’s Austin Knudsen, filed the lawsuit, accusing these firms of pressuring coal companies to cut emissions, which they argue harms competition. The lawsuit says the firms have bought large shares in coal companies to influence their decisions.
The lawsuit, filed in a Texas federal court, involves states like Texas, Alabama, Montana, and West Virginia. It alleges that these companies broke antitrust laws and asks the court to stop them from limiting coal production through their investments.
State Street called the claims “baseless,” saying it focuses on long-term financial interests and shareholder value. BlackRock’s CEO Larry Fink has previously stated that climate risk is a financial risk, urging companies to transition from fossil fuels to clean energy.
In 2021, BlackRock, Vanguard, and State Street joined initiatives like the Net Zero Asset Managers Initiative, committing to reducing carbon emissions and addressing climate change. Burning coal is a major source of carbon dioxide, which contributes to climate change, as well as other harmful pollutants.
Coal accounted for 19% of energy-related carbon emissions in 2022, with more than half coming from power companies, according to the U.S. Energy Information Administration.
Some attorneys general argue that these investment firms are harming consumers. Missouri’s Attorney General Andrew Bailey said these companies are driving up energy prices. Indiana’s Attorney General Todd Rokita accused the firms of benefiting financially while limiting energy production. Iowa’s Attorney General Brenna Bird criticized the firms, saying families and farmers are paying the price for their actions.