Texas suit alleging anti-coal “cartel” of top Wall Street firms could reshape ESG

A lawsuit filed by the state of Texas alleges that several top Wall Street firms have formed an "anti-coal cartel" to undermine the fossil fuel industry. The lawsuit claims that the firms, including BlackRock, JPMorgan Chase, and Bank of America, have coordinated their environmental, social, and governance (ESG) investment strategies to effectively boycott the coal industry. The case is seen as a test of whether corporate alliances on climate change can be considered antitrust violations. The Texas Attorney General argues that the firms have abused their collective market power to push the coal industry out of the financial system, ultimately harming consumers and the state's economy. The outcome of this lawsuit could have significant implications for the future of ESG investing and the role of financial institutions in addressing climate change. It highlights the ongoing tensions between environmental concerns and economic interests, and the legal boundaries around corporate coordination on sustainability initiatives.