Louisiana Attorney General Jeff Landry launched an investigation Tuesday into a number one pro-ESG, investor-led coalition that seeks to fight local weather change by getting companies to slash their emissions and carbon footprints.

The Republican official mentioned he's probing Franklin Templeton and the pension system for public workers in California referred to as CalPERS for his or her roles as U.S. leaders of the worldwide Climate Action 100+ initiative.

“ESG investing puts politics over people and raises significant concerns that companies guided by these green-energy fantasies may be engaging in unfair and deceptive practices that harm Louisiana consumers,” Mr. Landry mentioned. “Franklin Templeton is deeply embedded in Climate Action 100+; and we are troubled that, by focusing on the radical ESG agenda, it may be violating its fiduciary duties to shareholders in our state.”

The investigation is a part of a broader conflict towards environmental, social and company governance investing referred to as ESG, which conservatives name “woke capitalism” due to its climate-friendly practices. Republicans say ESG advances a liberal agenda over maximizing monetary returns, whereas defenders of the funding technique say it takes into consideration shoppers’ ethical values and unexpected dangers from local weather change.

Climate Action 100+ consists of 700 funding firms from across the globe with greater than $68 trillion in property below administration, and is a world chief in ESG. Franklin Templeton and CalPERS are each on the Climate Action 100+ Steering Committee, which helps monitor firms’ progress on going inexperienced.

Climate Action 100+, Franklin Templeton and CalPERS didn't instantly reply to requests for remark.

CalPERS, the nation’s largest public pension fund that had greater than $440 billion in property below administration as of final 12 months, doesn't have enterprise in Louisiana and isn't below Mr. Landry’s jurisdiction. But he's looking for to find out whether or not the fund’s affect in Climate Action 100+ might violate Louisiana shopper safety legal guidelines and negatively influence the state’s energy-rich economic system.

Franklin Templeton has roughly $1.5 trillion in property below administration and does function in Louisiana.

Mr. Landry mentioned his multipronged probe seeks to find out whether or not firms focused by Climate Action 100+ violated shopper safety legal guidelines, if non-governmental organizations related to the coalition have made public feedback that may violate Louisiana legislation and if Climate Action 100+ has urged companies to undertake “radical, far-left positions on ESG.”

Climate Action 100+ additionally just lately got here below the microscope of Republicans in Congress.

House Republicans, led by the now-Chair of the House Judiciary Committee Jim Jordan, final December demanded details about the coalition amid strategies it could possibly be working afoul of antitrust legal guidelines. Republicans accused the group of utilizing its affect to “work like a cartel” and drive companies to fight local weather change.

“When companies agree to work together to punish disfavored views or industries, or to otherwise advance environmental, social, and governance (ESG) goals, this coordinated behavior may violate the antitrust laws and harm American consumers,” Mr. Jordan, Ohio Republican, and different GOP lawmakers wrote on the time to Climate Action 100+.

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