We’re pleased to resolve this matter,” a BlackRock spokesperson told ESG Dive. The agreement dismisses the state’s 2023 lawsuit and does not find that the investment firm violated any laws.

Asset manager BlackRock agreed to new disclosure requirements about its use of sustainable-investment factors as part of a legal settlement with Tennessee Attorney General Jonathan Skrmetti, his office said on Friday.

The lawsuit accused the firm of making “misleading” statements on how strongly ESG goals drove its investments.

BlackRock, Inc. has settled a dispute with Tennessee over its ESG practices, which the state said misled consumers.

Tennessee said it settled a lawsuit with BlackRock Inc. after accusing the world’s largest money manager of allegedly breaching consumer protection laws by making “misleading” statements about its ESG investment strategy.

The settlement ends a lawsuit that was originally filed in December 2023 by the state of Tennessee under the Tennessee Consumer Protection Act. The suit alleged that BlackRock overstated the financial benefits of ESG-related strategies and didn’t adequately disclose its integration of ESG factors.

BlackRock has invested more than $41.7 billion in Tennessee companies and is the world’s largest asset manager.

BlackRock, the worlds largest asset manager with $11.6 trillion under management, has reached a settlement with Tennessee Attorney General Jonathan Skrmetti over its use of sustainable-investment factors.