24 State AGs Question Lawfulness of ESG Credit Rating Policies
Summary
South Carolina Attorney General Alan Wilson joined 23 other state attorneys general in sending a letter to Fitch Ratings, Moody's, and S&P Global Ratings questioning the lawfulness of their ESG credit rating policies. The states argue that while the agencies push companies to prioritize ESG factors in their methodology, they simultaneously increase demand for their own ESG-related consulting services, constituting an undisclosed material conflict of interest. The coalition also questions whether the policies violate antitrust laws or state laws banning unfair and deceptive trade practices.
“"Punishing people by taking money out of their pockets for their deeply held beliefs goes against the constitutional values of our nation."”
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GovPing monitors AG: South Carolina News for new courts & legal regulatory changes. Every update since tracking began is archived, classified, and available as free RSS or email alerts — 48 changes logged to date.
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A coalition of 24 state attorneys general sent a letter to three major credit rating agencies—Fitch Ratings, Moody's, and S&P Global Ratings—challenging the legality of their ESG credit rating methodologies. The states contend that the agencies' simultaneous promotion of ESG factors in ratings while selling ESG consulting services creates an undisclosed material conflict of interest, and that these practices may violate antitrust laws and state consumer protection statutes. Credit rating agencies and companies in ESG-sensitive industries, particularly fossil fuel companies, should monitor this development as it may signal increased regulatory scrutiny of ESG integration in credit assessments. The letter does not announce any enforcement action but raises questions that could precede formal investigations.
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Apr 23, 2026GovPing captured this document from the original source. If the source has since changed or been removed, this is the text as it existed at that time.
APR 22, 2026
Attorney General Alan Wilson raises concerns over credit rating agencies' ESG policies
(COLUMBIA, S.C.) - Attorney General Alan Wilson today joined a coalition of 23 states in questioning the lawfulness of the environmental, social, and governance (“ESG”) policies of three top credit rating agencies.
The agencies—Fitch Ratings, Moody’s, and S&P Global Ratings—have pledged to systematically incorporate ESG considerations into credit ratings. In considering highly speculative ESG predictions and goals, the agencies have downgraded the credit ratings of fossil-fuel companies, and their policies threaten to undermine the States’ bond ratings as well.
“Businesses and their ownership have the right to pursue legitimate aims as they wish,” Attorney General Wilson stated. “Punishing people by taking money out of their pockets for their deeply held beliefs goes against the constitutional values of our nation.”
The letter raises several concerns with the ratings agencies’ policies and practices. Among them, the letter notes that while the ratings agencies’ methodology pushes companies to prioritize ESG factors, they are also artificially increasing demand for their suite of ESG-related consulting services. This, the States argue, is likely an undisclosed and unlawful material conflict of interest. The letter also questions whether the ratings agencies’ ESG policies constitute an antitrust violation or otherwise violate the States’ laws that ban unfair and deceptive trade practices.
Joining Attorney General Wilson in today’s letter are the attorneys general of Alabama, Alaska, Arkansas, Florida, Georgia, Idaho, Iowa, Indiana, Kansas, Kentucky, Louisiana, Mississippi, Missouri, Montana, Nebraska, North Dakota, Ohio, Oklahoma, Texas, Utah, West Virginia, and Wyoming.
The letter may be viewed in its entirety here.
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For media inquiries please contact Robert Kittle, [email protected] or 803-734-3670
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