Politics & Government
ESG Ruling Puts New Pressure on Public Pension Funds and BlackRock
Lucas-'ESG could lead to serious liabilities and a breach of fiduciary duty and put trillions of dollars in American pension money at risk.'
Perhaps part of what Fred Lucas might have said is: 'follow the money trail.' Lusas is the author of the article in the Daily Signal provided to this writer for MHProNews as the latest installment in this "Reality Check" series for this Patch. The battle over ESG and DEI will be considered in Part II along with other topics.
Part I
News
EXCLUSIVE: ESG Ruling Puts New Pressure on Public Pension Funds and BlackRock
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Fred Lucas | March 25, 2025
FIRST ON THE DAILY SIGNAL—A federal court ruling regarding ESG investing with BlackRock could put public pension funds on the defense, a consumer group is warning.
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Consumers’ Research sent letters to the largest public pensions boards in each state Tuesday warning BlackRock’s focus on ESG–an acronym for environmental, social, and governance–could lead to serious liabilities and a breach of fiduciary duty and put trillions of dollars in American pension money at risk.
In a first-of-its kind federal court decision on ESG, U.S. District Judge Reed O’Connor, of the Northern District of Texas, held in January in the case of Spence v. American Airlines that the airline’s pension was in breach of its fiduciary duty for allowing BlackRock to weigh ESG consideration in employees’ retirement plans. BlackRock was not a party in the lawsuit.
“In Spence, offering BlackRock funds in the company’s 401(k) plans violated the company’s duty to focus only on financial returns because publicly available evidence put the plan fiduciaries on notice that BlackRock uses its funds to pursue goals other than financial returns—like the ESG goal of reducing greenhouse gas emissions,” says the letter shared with The Daily Signal.
BlackRock, based in New York, had an asset portfolio totaling $11.6 trillion in 2024. It has come under fire in recent years not only for ESG investing but also for ties to China, as well as having former executives in highly placed administration positions under President Joe Biden. The company also leveraged its resources to push changes to the board of ExxonMobil.
Earlier this month, The Wall Street Journal reported BlackRock broke with climate groups and eliminated diversity targets in a story headlined, “BlackRock’s ‘Woke’ Era is Over.”
However, Will Hild, executive director of Consumers’ Research, contends BlackRock is still promoting net-zero carbon and is trying to rebrand.
“This ruling shows there could be lawsuits against the state pension fund or lawsuits against pension trustees,” Hild told The Daily Signal. “ESG investing is a danger to pension holders, a danger to taxpayers, and a danger to pension trustees that could be held personally liable.”
He said he’s hopeful this will change the investment strategy of the firm going forward.
“This is not a vendetta against BlackRock, but I am opposed to pushing a political agenda with people’s retirement,” Hild added.
American Airlines investments reportedly did not have ESG objectives and did not underperform. Further, BlackRock has asserted support for its environmental and social focused investments significantly decreased in recent years.
“We always act independently and with a singular focus on what is in the best financial interests of our clients,” a BlackRock spokesperson told The Daily Signal. “Our only agenda is maximizing returns for our clients, consistent with their choices.”
Consumer Research to Pension Boards RE BR LawsuitDownload
The court ruling stemmed from a class action lawsuit by American Airlines pilot Bryan Spence with more than 100,000 participants in the retirement plan.
O’Connor, an appointee of George W. Bush, said in the opinion, “The evidence made clear that [American’s] incestuous relationship with BlackRock and its own corporate goals disloyally influenced administration of the plan.”
American Airlines did not immediately respond to an inquiry for this story.
The Consumers’ Research letter Tuesday asserts state pension boards should review their investment with BlackRock to ensure similar problems—such as politicized investments—aren’t happening.
“In conclusion, any state pension board using BlackRock to manage its pension plans is now on notice that a federal court has found that BlackRock acted with an ‘investment strategy … focused on ESG investing’ and ‘a pursuit of non-pecuniary interests,’ and fiduciaries of a fund that invested with BlackRock breached their duty of loyalty,” the letter continues. In January, Consumers’
Research sent a letter to all Fortune 500 companies warning of potential fiduciary duty violations and investment with BlackRock.
---
Part II - Additional Information plus Other Topics
1) The bias and agenda of an information source should routinely be kept in mind while evaluating any subject and its true meaning. Microsoft is the parent of Bing. Bing's AI powered Copilot is deemed by researchers to be left-leaning, as is the parent company. The co-founder of Microsoft is William "Bill" Gates III, who reportedly committed tens of millions of dollars to the election of Kamala Harris (D) in 2024.
🚨 #BREAKING: Bill Gates has put up $50 MILLION backing Kamala Harris, according to NYT
— Nick Sortor (@nicksortor) October" class="redactor-linkify-object">https://twitter.com/nicksortor... 22, 2024
This comes just days after @elonmusk told Tucker Carlson that some billionaires are “TERRIFIED” by Trump’s promise to release the Epstein client list
Bill Gates famously flew with Epstein… pic.twitter.com/k16wHgObFB
2) With that understanding, Copilot said the following in response to an inquiry by MHProNews.
"The intersection between ESG (Environmental, Social, and Governance) and DEI (Diversity, Equity, and Inclusion) lies primarily within the "Social" pillar of ESG."
3) In response to this next inquiry, notice what Copilot said.
Q- Why are conservatives and MAGA supporters so concerned over the push for ESG and DEI?
Conservatives and MAGA supporters often express concerns about ESG (Environmental, Social, and Governance) and DEI (Diversity, Equity, and Inclusion) initiatives because they view these frameworks as prioritizing progressive social agendas over traditional business goals like profitability and shareholder value. Here’s a breakdown of their concerns:
- Perceived Political Bias: Many conservatives argue that ESG and DEI policies reflect progressive ideologies, particularly on issues like race, gender, and climate change. They feel these initiatives exclude or marginalize conservative viewpoints, creating an imbalance in corporate and societal discourse 12.
- Impact on Business Priorities: Critics claim that ESG and DEI divert attention and resources away from core business objectives. They argue that companies should focus on maximizing profits and shareholder returns rather than engaging in social or environmental activism 2.
- Government and Market Interference: Some conservatives see ESG and DEI as forms of government or corporate overreach, imposing values and practices that may not align with the beliefs of all stakeholders. They worry about the potential for these frameworks to influence markets and policies in ways that undermine individual freedoms 3.
- Cultural Resistance: The broader "anti-woke" movement, which opposes what it sees as excessive political correctness, often overlaps with criticism of ESG and DEI. This resistance is rooted in a desire to preserve traditional cultural and social norms 1 2.
These concerns have led to pushback against ESG and DEI in various forms, including shareholder proposals, legislative actions, and public campaigns. Let me know if you’d like to explore this further!
3-https://www.forbes.com/sites/s...
4) Manufactured Home Pro News (MHProNews) has been periodically reporting to its readers about the pushback agains this leftist or 'progressive' agenda for some years in articles like those linked below.
https://www.manufacturedhomepr...
https://www.manufacturedhomepr...
5) The Trump Administration and DOGE have been at work uprooting DEI policies from the federal government, including in its funding to states, non-governmental organizations, and nonprofits. Why?
https://patch.com/florida/lake...
6) The case has been made that the leftist or so-called "progressive" movement in the U.S. has gained institutional dominance. Many (not all) in big media, big corporations, big tech, have been using lobbying and other influences in elections that right or wrong is often being funded with tax dollars. In essence, conservatives and MAGA supporters through pension plans, 401Ks, and through other channels are funding organizations that are working contrary to their own beliefs.
https://www.manufacturedhomepr...
7) While there are legal, opinion influencing, and other battles over these issues, the 2nd Trump Administration (a.k.a.: T2) is looking to uproot the mechanisms that are being exposed by DOGE and other sources from improper federal funding. Some of the largest asset managers in the world, companies like BlackRock, State Street, and Vanguard which manage trillions of dollars in assets have for years been pushing ESG and DEI style policies. People like BlackRock CEO Larry Fink have said that the pushback and controversy over promoting DEI and ESG may not be worth it, but the battle is far from over.
https://patch.com/florida/lake...
8) There are apparent ties between leftist or progressive agendas the Democratic Party politics. Curiously, as multiple Democratic presidential candidate and Senator Bernie Sanders (VT-self-declared Democratic Socialist) and others have said, the Democratic party has moved away from its stated support for 'the little guys' and minorities in America and is coyly working on behalf of the wealthy and their 'special interests.' The battle over ESG and DEI is part of the background to that agenda.
9) Here is how left-leaning CNN commentator Van Jones, who worked in President Barack Obama (D) his VP Joe Biden (D) administration, put it the other day.
“If progressives have a politics that says all white people are racist, all men are toxic, and all billionaires are evil it’s kinda hard to keep them on your side. If you're chasing people out of the party, you can't be mad when they leave.”
— Van Jones
pic.twitter.com/6sWJD5Q3VM
— The Rabbit Hole (@TheRabbitHole84) March" class="redactor-linkify-object">https://twitter.com/TheRabbitH... 23, 2025
10) Someone doesn't have to agree with Senator Bernie Sanders (VT-DS) or Van Jones on a range of issues in order to agree with them on some of those specific remarks. Congressman Seth Moulton (MA-D) also ran for the Democratic nomination for president. He made the observation last year that the Democratic Party is the party of the wealthy and elites and had abandoned the middle class.
11) But the sad reality is that the Democratic Party has arguably been posturing support for the poor, minorities, and middle class in recent decades while slyly embracing the interests of the so-called "1 percent," the ruling class, and administrative state. As a political independent these last 14 years, that isn't an automatic endorsement of Republicans. But they are among the reasons for other independents to question the Democratic pitch which has clearly moved further toward the radical side, an essentially Marxist-Socialist message that fails to deliver for the masses that they claim to champion. The number of stories of ex-Democrats and ex-progressives that have emerged in recent months and years is eye opening for those who actually care about reality and the truth. The story of Elizabeth Nickson is just one of millions of examples of that, see her take linked below.
https://patch.com/florida/lake...
12) President Trump (R) and Elon Musk have both said that they supported Democrats in years gone by. Health and Human Services Secretary Robert F. Kennedy Jr. was a lifelong Democrat who left the Democratic Party because he said the party had been captured by the elites and were rigging the primary so Joe Biden could stay in office. Kennedy left the party, ran as an independent, and eventually joined forces with the 2024 Trump campaign. The following Q&As with Copilot are instructive.
https://www.manufacturedhomepr...
13) Not unlike former Democratic Party Congresswoman Tulsi Gabbard (HI-D), who also ran for that party's presidential nomination and who held a role in Democratic leadership, also quit that party. She too joined with Trump to remake the Republican Party, the GOP (Grand Old Party of Abraham Lincoln), "the party of the people." That quote is from KEYE - a left-leaning CBS News affiliate in Austin, TX.
https://patch.com/florida/lake...
14) With that in mind, this bit of a poke at the outcry by Democrats and Democratic supporting organizations begins to come into focus.
15) There is a battle for institutional control underway in the U.S. It is clear that the wealthy who have captured and rule much of the Democratic Party, along with holding influence over scores of large institutions in the U.S., are trying to hold onto power. Some so-called RINOs - Republicans in Name Only - are finding it less comfortable to be in the Trump-led MAGA or America First Republican Party. What will happen in the future is unclear, but at this time, there is evidence of a political realignment. There is evidence of a religious reawakening too.
https://patch.com/florida/lake...
https://patch.com/florida/lake...
https://patch.com/florida/lake...
Reality is important. The truth matters. Properly informed and committed believers have been ahead of the understanding game. Check out other installments in this "Reality Check" series for this Patch. Thank you for checking in.
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L. A. “Tony” Kovach is a publisher who has earned multiple awards in history. He and his family live in a manufactured home on private property in Winter Haven, FL. He is the co-founder of Manufactured Home Living News.com (MHLivingNews.com) and Manufactured Home Pro News.com (MHProNews.com), trade publications serving segments of the manufactured home industry. Having worked in several segments of the manufactured home industry for over 3 decades, Kovach is a widely acknowledged and often praised expert on manufactured housing. ###
