Regulatory Developments Among State AGs. Over the
past few weeks, various state attorneys general have either issued
guidance or initiated enforcement actions in connection with ESG
ratings. Specifically, among other things, nineteen state attorneys
general, spearheaded by the Attorney General of Missouri, have
announced an “investigation into ESG (environmental, social,
governance) investing ratings company Morningstar Inc. and its
subsidiary Sustainalytics for alleged consumer fraud or unfair
trade practices” in connection with certain allegedly
misleading ESG ratings. This particular investigation has focused
in particular on how certain ESG ratings may have violated state
laws against the BDS movement (a Palestinian-led campaign for
“boycott, divestment, and sanctions” against Israel),
although it also seeks to investigate the reliability of ESG
ratings generally. Additionally, the attorneys general of Louisiana
and Indiana each separately issued guidance that