Climate Change

Investors Accused of Colluding to Force Coal Production Cuts in Texas Lawsuit

A legal action filed in Texas has raised serious allegations against some of the world's leading investment firms, claiming that they conspired to lower coal production in a bid to address climate change. The lawsuit describes how companies like BlackRock, Vanguard, and State Street purportedly colluded to achieve this goal, an assertion that has led to significant controversy as these firms are typically viewed as major players in various markets, including coal.

In a recent court session, BlackRock’s attorney challenged the validity of the lawsuit by suggesting that the accusations are not based in reality. He pointed out that the decline in the coal industry is a trend that has been occurring for many years, driven by numerous factors, long before any supposed concerted effort to manipulate production levels came into play. Additionally, the Texas attorney representing the suit highlighted previous statements from BlackRock's CEO, who has advocated for corporations to set and achieve targets for reducing greenhouse gas emissions, implying that this included a natural inclination for coal companies to cut back on their output.

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