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

Filed

United States of America

Kentucky

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An aim to achieve a quantifiable outcome within a given time-frame, set by an institution such as a national government.

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Justice is the ethical and political framework that addresses fairness, including issues of responsibility, rights, and structural inequity.

Renewable energy means all forms of energy produced from renewable sources in a sustainable manner.

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Area of the economy in which actors engage in identical or related activities.

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The management and allocation of funds, assets and investments to meet various objectives

People whose sexual orientation, gender identity, or gender expression differs from the majority or societal norms

People who are less able to respond to the effects of climate change due to having limited financial or physical assets

A loan is a policy instrument where funds are provided to a borrower with the expectation of repaying the principal plus interest.

A target to reduce the prevalence of a greenhouse gas over a specific time frame

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Either money or something of monetary value is transferred between two or more organisations, people or countries.

Extreme weather refers to events where a weather variable exceeds (or falls below) a threshold. Meaning it is significantly different from the average or usual weather pattern.

Social protection systems consist of policies that help people manage social risks in order to prevent poverty and maintain decent incomes and living standards

People whose health, both mental and physical, makes them more vulnerable to the effects of climate change

woman and genders outside of the gender binary

This sector includes firms and individuals offering specialised expertise in fields such as law, accounting, consulting, science and engineering.

Activities of businesses and institutions that provide financial services and products to individuals and organisations.

Climate change impacts our society by disrupting the natural, economic and social systems we depend on. Physical hazards and underlying vulnerabilities can lead to increased resource competition for food and water, which can heighten the risk of conflict.

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