The federal district court for the Eastern District of Kentucky dismissed a First Amendment claim challenging the Kentucky Attorney General ‘s investigation into six national banks’ environmental, social, governance (ESG) investment practices. The six banks were members of the United Nations’ Net-Zero Banking Alliance, and the Attorney General suspected that by devising lending and investment strategies to eliminate global carbon emissions by 2050, the banks discriminated against businesses not aligned with this goal in violation of Kentucky consumer protection statutes and antitrust law. The court found that neither a nonprofit corporation whose membership included national and local banks or a subsidiary of the nonprofit that financed multifamily housing projects had demonstrated standing for the First Amendment claim. Because the only federal claim was dismissed, the court found it could not exercise jurisdiction over the plaintiffs’ state law claims. The court therefore remanded the plaintiffs’ these claims to state court.

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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Kentucky Federal Court Dismissed First Amendment Claim Challenging Kentucky Attorney General’s Investigation of Banks’ ESG Investing

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Kentucky Federal Court Dismissed First Amendment Claim Challenging Kentucky Attorney General’s Investigation of Banks’ ESG Investing

Target

Policy instrument

Risk

Impacted group

Just transition

Renewable energy

Fossil fuel

Economic sector

Finance