A trade association for banks in Kentucky and a company that finances affordable housing filed a lawsuit in Kentucky Circuit Court to bar the Kentucky Attorney General from continuing with his investigation of “violations related to ESG (environmental, social, governance) investment practices.” On October 19, 2022, the Attorney General issued six subpoena and civil investigation demands (CIDs) to banks. The complaint alleged that the CIDs—which included 24 Demands for Information and 20 Demands for Documents—made “excessive demands” that “plainly create unreasonable burdens upon and governmental investigations against businesses and people who might worry about, discuss, or even think about global climate change or environmental activities.” Among the alleged “excessive demands” was a demand for production of documents and communications related to any “Global Climate Initiative,” which was defined as any “group, organization, or affiliation of private and/or public entities for the purpose of utilizing the financial system to reduce or eliminate greenhouse gas emissions or otherwise pursue environmental goals,” including the Glasgow Financial Alliance for Net Zero and Net-Zero Banking Alliance. The plaintiffs claimed that the Attorney General was acting outside the scope of his authority; that the Attorney General violated rights or speech and association granted by the U.S. and Kentucky Constitutions; and that the Attorney General violated a Kentucky law enacted in 2022 that imposed restrictions on state investments in and contracting with companies that engage in “energy company boycotts.”

Lawsuit seeking to block the Kentucky Attorney General's investigation of banks' ESG investment practices.

HOPE of Kentucky, LLC v. Cameron

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Bank Trade Association and Affordable Housing Financer Challenged Kentucky Attorney General’s ESG Investigation

Filed

United States of America

Kentucky

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