Twenty-one state attorneys general sent a letter to 25 asset managers warning that their support of environmental, social, and governance (ESG) policies could violate their fiduciary duties.

The 14-page letter, spearheaded by Montana Attorney General Austin Knudsen (R.), addresses asset managers who voted in favor of recommendations on ESG shareholder proposals from Institutional Shareholder Services, a company that provides clients with guidance on the ESG agenda.

“Your company is among the twenty-five large asset managers or their affiliates … who voted 75% or more of the time with Institutional Shareholder Services (“ISS”) recommendations ‘for’ environmental proposals flagged by the activist group Ceres,” the letter, a copy of which was obtained by The Daily Wire, reveals.

“The Asset Managers’ support for these shareholder proposals was over twice as high as the overall market, which supported them only 37% of the time, and only 17% of these proposals received majority support.”

“The asset managers appear to be more concerned with earning social credit than doing what’s best for their clients. If they are deferring their analysis and decision-making to environmental activist groups, then they are failing to meet their fiduciary duty to their shareholders,” Knudsen told The Daily Wire. “I am determined to get answers and ensure the asset managers are meeting their obligations to make their clients as much money as possible and following the law.”

The letter comes amid a broader conflict between asset managers and attorneys general who warn that ESG policies could impede the former’s financial obligations. Red states have pulled billions of dollars from Blackrock over its ESG policies, citing the firm’s ideologically-motivated investing strategies.

The 21 attorneys general cite specific concerns in the letter, noting that “voting with ISS’s recommendations, without further analysis on the Asset Managers’ part,” could violate their fiduciary duties.”

The letter also delves into specific votes taken by the asset managers, including votes in favor of proposals that the attorneys general say “limit companies’ free speech with policymakers” and “force financial services and insurance companies to cut off business relationships with their customers for non-financial reasons,” all in order to meet certain climate-related goals.

The letter explains why the attorneys general are concerned with the associations of ISS, the organization that appears to be informing the votes of the asset managers. ISS, which is primarily owned by Deutsche Borse AG, a foreign entity, is also a member of the Interfaith Center on Corporate Responsibility.

The organization says its members are “pressing companies to phase out of fossil fuels” and “seek to move companies in key industries to reduce their … emissions that are responsible for climate change.”

The attorneys general request the asset managers provide answers to a list of questions no later than October 4th.

“How are the votes supporting the shareholder proposals identified in this letter consistent with your fiduciary duties?” the letter inquires. “Do you agree that you must exercise voting rights in a manner that is consistent with your fiduciary duty to your customers to act solely in their financial interest?”

“Do you make any representations to your customers that relate to how you exercise voting rights for funds they invest in?” the letter asks.

The 25 asset managers addressed in the letter include Morgan Stanley, BMO Global Asset Management, HSBC Global Asset Management, Guggenheim Investments, and TD Asset Management, among others.

The letter was signed by Republican attorneys general from Alabama, Arkansas, Florida, Georgia, Idaho, Indiana, Iowa, Louisiana, Missouri, Montana, Nebraska, New Hampshire, North Dakota, Oklahoma, South Carolina, South Dakota, Tennessee, Texas, Utah, West Virginia, and Wyoming.