25 U.S. states sue Biden Labor Department over ESG
The suit, which was joined by states such as Texas, Florida, Utah, Virginia, Georgia, Ohio, and Tennessee, claims that the Biden administration’s rule 'undermines key protections' established by the Employee Retirement Income Security Act (ERISA).
On Thursday, an attorney general from 25 states filed a lawsuit against the Labor Department over a measure allowing fiduciaries to consider environmental, social, and corporate governance (ESG) investments in retirement funds.
The suit, which was joined by states such as Texas, Florida, Utah, Virginia, Georgia, Ohio, and Tennessee, claims that the Biden administration’s rule “undermines key protections” established by the Employee Retirement Income Security Act (ERISA).
The Biden rule, which reverses a policy created under the Trump administration, allows fiduciaries to weigh “the economic effects of climate change and other ESG considerations” in their decisions.
According to Liberty Energy CEO Chris Wright, whose company is among the plaintiffs, the rule makes it “harder to protect our workers’ retirement security” and “impedes investing in our industry and its ability to provide reliable and affordable energy to our communities,” Wright explained to the Daily Wire.
The suit comes after Republican state treasurers divested $12 billion from asset management company BlackRock last year due to their promotion of the ESG movement.
Public opinion on ESG investing remains largely skeptical. A poll from The Daily Wire showed that 64% of respondents believe “individual investors” should decide whether funds are appropriated according to ESG standards, while 20% believe that “Wall Street asset managers” should make such decisions.
Texas Attorney General Ken Paxton noted that the rule “is an affront to every American concerned about their retirement account” and that “the Biden administration is now opting to risk the financial security of working-class Americans to advance a woke political agenda.”
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