BlackRock, Inc. has settled a dispute with Tennessee over its ESG practices, which the state said misled consumers.

Tennessee AG Skrmetti settles with BlackRock over ESG disclosures, ensuring transparency and fidelity to investors' interests.

Asset manager BlackRock agreed to new disclosure requirements about its use of sustainable-investment factors as part of a legal settlement with Tennessee Attorney General Jonathan Skrmetti, his office said on Friday.

BlackRock, the worlds largest asset manager with $11.6 trillion under management, has reached a settlement with Tennessee Attorney General Jonathan Skrmetti over its use of sustainable-investment factors.

The lawsuit filed in 2023 alleged unfair impact on the asset management giant's non-ESG funds due to its involvement in climate groups, among other factors.