The attorneys general of 25 Republican states have filed a lawsuit which looks to stop a rule that allows retirement plan managers to weigh environmental and social issues when making investments. The rule is set to come into effect on 30 January, and if introduced will allow – but not require – fiduciaries to weigh ESG factors when making investment decisions for US retirement accounts. The lawsuit was filed in Texas federal court by Utah Attorney General Sean Reyes. The attorneys general argue that the rule violates the Employee Retirement Income Security Act, which mandates that retirement plan assets should solely be invested to the benefit of participants. States that joined the challenge include Virginia, Louisiana, Alaska, Arkansas, Florida, Georgia, Indiana, South Carolina, Tennessee, West Virginia and Wyoming.
BREAKING: I’m co-leading a lawsuit against the Biden Admin to end a rule that risks millions of Americans’ retirement accounts by allowing certain fund managers to prioritize woke ESG investments over achieving financial stability for clients.https://t.co/sBOMlxKZ1P
— Texas Attorney General (@TXAG) January 26, 2023