March 10, 2023

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

Lori Kalani, Bernard Nash

Cozen O'Connor

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Cozen O'Connor

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.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.