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By: Lance C. Dial and Anna E. L'Hommedieu, US law firm K&L Gates' latest US Asset Management and Investment Funds Alert.

Over the past weeks, multiple state attorneys general have sent civil investigative demands (CIDs) or subpoenas to asset managers regarding their involvement in the environmental, social, and governance (ESG) initiatives Climate Action 100+ (CA100+) and Net Zero Asset Managers Initiative (NZAMI).

The requests are similar, generally requesting communications the asset manager sent or received with respect to its engagements with CA100+ focus companies in connection with the asset manager's membership in CA100+, Ceres, or NZAMI. The requests also seek information about how the asset manager cast proxy votes in connection with shareholder proposals relating to greenhouse gas emissions at certain banks, insurance companies, or energy and utility companies.

These CIDs and subpoenas represent an escalation from the 30 March 2023 open letter from 21 attorneys general to 53 top asset managers raising concerns about how asset managers were voting proxies on certain key ESG issues (the AG Letter). The AG Letter specifically raised questions with respect to the alignment between membership in NZAMI and CA100+ with asset manager fiduciary obligations. The AG Letter also laid out specific concerns regarding how asset managers vote proxies with respect to their holdings in banks, insurance companies, or energy and utility companies.

The re......................

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