25 financial companies are accused of putting environmental policy above shareholders’ eco-commitment: “We will get answers”

The attorneys general of 24 states have sent a letter to 25 asset management firms demanding responses to recent votes on proposals that they say disproportionately favor environmental concerns over those of their shareholders.

All companies selected for the survey had voted at least 75 percent of the time in line with the environmental proposals of the nonprofit Institutional for Shareholder Services (ISS), which had been highlighted by the pro-green advocacy group Ceres.

“Asset managers' support for these shareholder proposals was more than double that of the overall market, which supported them only 37% of the time, and only 17% of these proposals received majority support,” said the letter, initiated by Montana Attorney General Austin Knudsen.

“Given this large discrepancy, we are concerned that the asset managers have outsourced their voting rights in this area to ISS or another third party and are failing to meet their fiduciary duties,” the letter said.

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Alabama Attorney General Steve Marshall, another lead signatory, said that as an elected official in his state, his job is to protect Alabama's citizens, including consumer protection.

Marshall said the letter was intended to clarify whether these financial firms had essentially “outsourced” their due diligence to a non-fiduciary company whose agenda was more aligned with Washington Democrats and the green movement than with their own shareholders.

“To the extent that our consumers are threatened with negative measures, I believe it is our duty to intervene,” he said.

The letter is intended to provide answers to pressing questions, the most important of which is: “Are [these votes] in the financial interest of the shareholders who are shareholders from my state,” Marshall said.

“And: Are you maximizing financial returns or are you pursuing a political agenda?”

“One of them is consistent with their duty of loyalty. The other is not.”

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Fox News Digital contacted several of the companies listed earlier in the letter that had the most votes in line with the environmentally friendly recommendations and received only sparse responses.

A representative of Legal & General Investment Management (LGIM) – which voted “for” the proposals recommended by ISS in almost 95 percent of cases – declined to comment when asked.

A person who answered the phone at Wilmington Trust's press office declined to comment, but then said the letter painted a “pretty wide swath” and ended the call. The Delaware-based company voted 88% in favor of the green recommendations.

Allianz Global Investors, which owns 93% of the company, did not respond to a request for comment. UBS Capital Management also did not respond to a request for comment.

Maryland-based ProFund Advisors/ProShares — which owns a 93% stake, according to the letter — promised to comment but never responded further.

The letter outlined several concrete proposals, including 13 that “ [greenhouse gas] targets for traditional energy producers and closely linked companies, which would effectively limit the sale of their products.”

Ten further proposals aimed to [corporate] Others set themselves the goal of reducing CO2 emissions by 2050 and ensuring freedom of expression in line with the Paris Climate Agreement.

When asked about his main concerns, Marshall said the question is how many founding members of the organizations these firms potentially seek advice from are members of pro-ESG or net-zero alliances.

Environmental, social and governance (ESG) is the abbreviation for an investment principle that focuses on environmental, social and governance aspects.

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“[Those] have an absolute agenda – which has nothing to do with financial returns for investors,” he said.

“The question for these asset managers is: Have you investigated this conflict and does it impact the recommendations for these votes?”

“Frankly, as a lawyer, you are interested in conflicts. But more importantly for the citizens of our state, are these conflicts potentially not only against their financial interests, but also against the economic interests of Alabama as a whole?”

Another prosecutor who signed the letter, Virginia Attorney General Jason Miyares, said the firms had a fiduciary responsibility to be “proper custodians” for their investors.

“Sound economic policies must prevail over social fads,” Miyares said, adding that shareholders' resources should not be “pocketed by those driven by irresponsible social and political agendas.”