Attorneys general from 10 US states, led by Texas AG Ken Paxton, have sent letters to six major financial institutions warning that their DEI and ESG policies could face legal enforcement if they violate state or federal laws, as reported by ESG Dive.
The letters — sent on January 23 to Bank of America, BlackRock, Citigroup, Goldman Sachs, JPMorgan Chase, and Morgan Stanley — focus on employment and board diversity quotas, supplier diversity programs, and ESG-related proxy voting policies. The targeted firms have 45 days to respond.
In a related press release, Paxton criticized "unlawful race- and sex-based quotas and so-called 'green energy' schemes," vowing to hold firms accountable. The probe follows Paxton's earlier investigation into several banks, which was dropped after their recent exit from the Net-Zero Banking Alliance. It also comes as President Trump moves to dismantle Biden-era DEI policies.
Notably, when asked about anti-ESG and anti-DEI activists, JPMorgan CEO Jamie Dimon responded, "Bring them on." While he acknowledged that some policies may have to change, Dimon reaffirmed the bank's commitment to its diversity and climate strategies.
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