Attorney General Murrill today joined a coalition of 23 States in questioning the lawfulness of the environmental, social, and governance (“ESG”) policies of three top credit rating agencies. The agencies—Fitch Ratings, Moody’s, and S&P Global Ratings—have pledged to systematically incorporate ESG considerations into credit ratings. In considering highly speculative ESG predictions and goals, the agencies have downgraded the credit ratings of fossil-fuel companies, and their policies threaten to undermine the States’ bond ratings as well.

“Louisiana families expect decisions that are grounded in reality, not driven by political agendas or outside pressure. Financial institutions should focus on responsible risk assessment, transparency, and delivering value, not advancing ideological priorities that distort the market and sideline accountability to the public," said Attorney General Liz Murrill.

The letter raises a number of concerns with the ratings agencies’ policies and practices. Among them, the letter notes that while the ratings agencies’ methodology pushes companies to prioritize ESG factors, they are also artificially increasing demand for their suite of ESG-related consulting services. This, the States argue, is likely an undisclosed and unlawful material conflict of interest. The letter also questions whether the ratings agencies’ ESG policies constitute an antitrust violation or otherwise violate the States’ laws that ban unfair and deceptive trade practices.

Joining Attorney General Murrill in today’s letter are the attorneys general of Alabama, Alaska, Arkansas, Florida, Georgia, Idaho, Iowa, Indiana, Kansas, Kentucky, Mississippi, Missouri, Montana, Nebraska, North Dakota, Ohio, Oklahoma, South Carolina, Texas, Utah, West Virginia and Wyoming.

The letter may be viewed in its entirety here.