AG Labrador Demands Answers from Credit Agencies Accused of Using ESG Policies to Drive Up Energy Costs

BOISE, ID - Attorney General Raúl Labrador joined a 23-state coalition questioning the lawfulness of ESG policies at the country's three largest credit ratings agencies. Fitch Ratings, Moody's, and S&P Global Ratings pledged to United Nations-backed climate groups that they would incorporate ESG goals into their credit ratings, then downgraded American energy companies accordingly. Those downgrades increase borrowing costs for energy companies, and those costs flow to consumers at the pump.

"Credit ratings agencies are supposed to provide honest, objective financial analysis that investors and consumers can trust," said Attorney General Labrador. "Instead, these agencies made undisclosed climate commitments, used their ratings to downgrade American energy companies based on those commitments, and then sold those same companies consulting services to help improve their scores. Those decisions ripple through the economy and contribute to higher energy costs for Idaho families."

The coalition's letter raises concerns that the agencies violated their own methodologies, created undisclosed conflicts of interest, and may have violated antitrust and consumer protection laws. The letter was also forwarded to the Securities and Exchange Commission. Failure to take these corrective actions will inform the coalition's assessment of whether enforcement action, antitrust investigation, referral to the SEC's Office of Credit Ratings, or coordination with the Department of Justice is warranted.

Read the letter here.