Asset manager Vanguard has reached a $29.5 million settlement with Texas and other Republican-led states in a litigation case that accused the asset manager and its biggest competitors BlackRock and State Street of conspiring to suppress coal production. The case argues that strong influence and proxy votes pressured coal companies to cut production, with the outcome of the case expected to have implications on the broader ESG investment industry. The Financial Times reports on the news.
Meanwhile, EU countries have approved changes that significantly scale back sustainability laws following concerns that red tape was hindering competitiveness in the global economy. The revised Corporate Sustainability Due Diligence Directive will now apply only to the largest companies and delays compliance deadlines until 2029, while removing requirements for corporate climate transition plans. The move reflects the ongoing tension between sustainability ambition and economic policy priorities. Reuters covers the news.
