Diego Morales, the secretary of state of Indiana, recently penned a cease-and-desist letter to BlackRock for securities fraud. Legislators in the state have already approved a bill that prohibits contentious strategies for environmental, social and governance (ESG) investment.
In the letter, Morales accused the company of making misleading and false statements concerning its ESG funds. The letter was issued to the company through the state’s securities division, which regulates the securities industry. It is almost identical to a letter issued by Michael Watson, Mississippi’s state secretary.
Indiana’s securities division claims that the asset manager repeatedly told investors in the state that the company’s financial outcomes and prospects would be better long-term through funds backed by ESG. In the letter, Morales emphasized that there was almost no evidence to support these statements. However, he doesn’t provide any evidence to disprove these claims.
In his written statement, Morales explained that investment companies that participated in dishonest activities undermined the integrity of the financial markets and betrayed the trust of their clients. He noted that his office was committed to strengthening regulatory frameworks and law enforcement to make sure investors in the state were protected and those who exploited the system were held accountable.
A BlackRock representative stated in a recent interview that Morales’ letter was equivalent to a politically motivated attack that misrepresented the company’s investment approach. The rep added that the company was focused on assisting thousands of clients in the state to achieve their goals on investment.
BlackRock plans to defend itself as well as its investors against this wanton use of power. In a report released last week, BlackRock revealed that it had decreased its backing for shareholder resolutions on social and environmental issues. This decision, it argued, was because most of the efforts negatively affected the financial interests of shareholders long-term; he resolutions also lacked merit.
Between July 2023 and June 2024, the company supported only 4% of the 493 resolutions submitted. This is a decrease from the 7% backed 12 months previously and more than 20% in the same period in 2021–2022.
This announcement comes after BlackRock announced at the start of the year that it had grown support for proposals on corporate governance and was centering on the financial health of companies. From the latest report, the company backed 21% of such resolutions in the period. This is an 11% increase from corporate governance resolutions BlackRock backed 12 months earlier.
As more companies such as First Tellurium Corp. (CSE: FTEL) (OTCQB: FSTTF) make ESG a normal part of their operations, efforts to fight this transition are likely to lose steam since the benefits of the transition will speak for themselves.
NOTE TO INVESTORS: The latest news and updates relating to First Tellurium Corp. (CSE: FTEL) (OTCQB: FSTTF) are available in the company’s newsroom at https://ibn.fm/FSTTF
About ESGWireNews
ESGWireNews (“ESG”) is a specialized communications platform with a focus on the Environmental, Social and Governance (ESG) sector and public companies committed to sustainable corporate practices. ESGWireNews is one of 60+ brands within the Dynamic Brand Portfolio @ IBN that delivers: (1) access to a vast network of wire solutions via InvestorWire to efficiently and effectively reach a myriad of target markets, demographics and diverse industries; (2) article and editorial syndication to 5,000+ outlets; (3) enhanced press release enhancement to ensure maximum impact; (4) social media distribution via IBN to millions of social media followers; and (5) a full array of tailored corporate communications solutions. With broad reach and a seasoned team of contributing journalists and writers, ESG is uniquely positioned to best serve private and public companies that want to reach a wide audience of investors, influencers, consumers, journalists and the general public. By cutting through the overload of information in today’s market, ESG brings its clients unparalleled recognition and brand awareness. ESG is where breaking news, insightful content and actionable information converge.
To receive SMS alerts from ESGWireNews, text “ESG” to 888-902-4192 (U.S. Mobile Phones Only)
For more information, please visit https://www.ESGWireNews.com
Please see full terms of use and disclaimers on the ESGWireNews website applicable to all content provided by ESG, wherever published or re-published: https://www.ESGWireNews.com/Disclaimer
ESGWireNews
Los Angeles, CA
www.ESGWireNews.com
310.299.1717 Office
Editor@ESGWireNews.com
ESGWireNews is powered by IBN
