Attorney General Paxton joined a Missouri-led multistate investigation into Morningstar, Inc. and its wholly owned subsidiary, Sustainalytics, for potential violations of consumer protection and anti-Boycott, Divestment, and Sanctions (BDS) laws. This is the first investigation by state attorneys general into an Environmental, Social and Governance (ESG) ratings company for alleged consumer fraud and unfair trade practices.

“The ESG movement is the latest tool that woke corporations are using to push a radical and left-leaning social agenda into every corner of American life,” said Attorney General Paxton. “It’s harmful to our state and nation, and it may be illegal as well. I’m going to get to the bottom of Morningstar’s ESG agenda, and I’ll hold them accountable.”

The investigation follows other actions that Attorney General Paxton has taken to ensure that companies basing decisions on ESG factors are not violating state and federal laws to push a radical social and climate agenda. For example, in early August 2022, AG Paxton sent a letter to BlackRock CEO Larry Fink, challenging his company’s reliance on ESG investment criteria rather than shareholder profits in managing state pension funds.

To read the CIDS for Sustainalytics click here.

To read the CIDS for Morningstar click here.