Paxton secures settlement from Vanguard in Texas lawsuit alleging collusion to harm coal industry

In a win for the fight against ESG, Vanguard has agreed that it will not attempt to direct its business strategy toward portfolios that reduce carbon emissions. It has also agreed to make its proxy voting transparent for investors and its role in climate groups. 

In 2024, Texas Attorney General Ken Paxton sued BlackRock, State Street Corporation and Vanguard Group, alleging they had colluded to harm the coal industry, something the firms have long denied. 

In the settlement, Vanguard denied any wrongdoing or illegal conduct. 

“Coal is an essential industry to support America’s ever-growing energy demands, and my office will continue to uproot and destroy any attempt by investment giants to push a woke agenda that puts American energy at risk,” Paxton said in a statement. 

Will Hild, executive director of Consumers’ Research, called the settlement a “reckoning.” 

“This settlement with Vanguard is a massive blow to the ESG asset manager cartel that sets the stage that more is to come,” Hild said.