At a time when millions of Americans are struggling financially, with everything from unaffordable housing prices to rising utility bills, inflationary pressure and volatile energy markets, the last thing they need is a political stunt masquerading as legal action. Yet that’s precisely what the lawsuit led by Texas Attorney General Ken Paxton (R), backed by a dozen other Republican attorneys general, represents.

Their complaint targets the ability of financial institutions to consider all risks, specifically environmental risks, when making investment decisions in the energy sector. It argues that three major institutional investors — BlackRock, State Street and Vanguard — had colluded to suppress coal production and manipulate energy markets. Yet minimal evidence has been presented to support allegations of illegal coordination, let alone market manipulation.

What we’re actually seeing is the financial system responding rationally to long-term economic trends, and the energy sector reflecting a decades-long trend.

Coal has seen a steep decline in both demand and profitability, with production dropping........

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