Democratic AGs Oppose Legislative Efforts to Prevent ESG-Related Investment Decisions

  • A coalition of 21 Democratic AGs wrote a letter to Congressional leaders opposing a joint resolution to overturn a recent DOL rule on private-sector retirement investments. The rule clarifies that fiduciaries of private-sector retirement plans can consider environmental, social, and governance (ESG) factors when making investment decisions.
  • The letter alleges that the joint resolution, introduced by Senator Mike Braun and Representative Andy Barr pursuant to the Congressional Review Act, is part of a broad pattern of actions that is being undertaken to limit or prohibit the consideration of ESG factors in investment decision-making. The AGs allege that this pattern of actions has resulted in increased risks and costs to retirement plan beneficiaries.
  • The letter asks Congress to reject the joint resolution and allow the DOL’s rule to remain in place.
  • We have provided continuing coverage of AG action in the area of ESG-focused investing, including a lawsuit brought by a separate AG coalition seeking to block implementation of the same DOL rule.