Eleven Republican-led states on Nov. 27 sued BlackRock, Vanguard, and State Street—the Big Three passive asset managers—arguing the firms violated antitrust laws. The states said the firms’ collective ESG engagement hurt coal production, raising consumer energy costs. The firms argued they operate independently and compete with one another.

BlackRock, Vanguard, and State Street hold large stakes in many publicly traded corporations. The firms used to participate in global agreements like Climate Action 100+, which require members to use their stakes to influence companies to reduce carbon emissions and move to alternative energy sources. The attorneys general said those agreements were anti-competitive and discriminatory against fossil fuel industries.

Ballotpedia tracks support for and opposition to the environmental, social, and corporate governance (ESG) investing movement. To learn more about arguments for, against, and about ESG, click here. For more information on reform proposals related to ESG policy, click here.