Texas and 10 other states have filed a lawsuit against BlackRock, Vanguard and State Street, accusing the firms of colluding to suppress coal production and inflate energy prices. The lawsuit claims these companies violated federal and state antitrust laws by using their influence to promote ESG policies.
The complaint, filed in the Eastern District of Texas, alleges that the firms used their ownership stakes in coal producers to reduce coal output, leading to higher costs for American consumers. The companies’ practices, the lawsuit argues, prioritized environmental goals over free-market competition.
Texas Attorney General Ken Paxton described the companies’ actions as “a coordinated effort to harm American energy production and drive up prices.” He also accused the firms of misleading investors by pursuing ESG strategies in funds marketed as non-ESG.
Programs like Climate Action 100 and Net Zero Asset Managers Initiative are highlighted as tools allegedly used to pressure coal producers. The lawsuit claims these efforts artificially depressed coal supply and disrupted energy markets nationwide.
The states involved in the suit are seeking financial penalties, including fines for violations of Texas law, and measures to prevent future market manipulation. The complaint also calls for an injunction to stop the firms from using their stakes to influence coal production policies.
This legal challenge is part of a broader push by states to counter ESG-driven financial practices, which critics argue harm energy independence and economic fairness. The case reflects growing tensions between state governments and large investment firms over the future of the U.S. energy market.
