by James Murphy, The New American:
More than two dozen states are suing the Biden administration over a Department of Labor (DOL) rule scheduled to take effect on Monday. The rule, which was originally announced in November, would undo a Trump era ban that prevented fiduciaries from using ESG (Environment, Social, Governance) factors when investing money in pension funds.
ESG requires funds to consider environmental and social factors when investing in companies. Many refer to ESG funding as “woke investing,” as it is required to factor in not only how companies are dealing with so-called climate change, but also their commitments to other woke issues such as LGBTQ rights and even abortion.
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The plaintiffs believe that ESG investing is a means to advance left-wing causes without having to deal with the ballot box, rather than a sound investment strategy based on the needs of consumers.
Led by Utah Attorney General Sean Reyes, the suit is part of an ongoing backlash against ESG investing being pushed by mainly GOP-led states. Reyes explained in a statement released on Thursday.
The Biden Administration is promoting its climate change agenda by putting everyday people’s retirement money at risk…. Americans are already suffering from the current economic downturn. Permitting asset managers to direct hard-working Americans’ money to ESG investments puts trillions of dollars of retirement savings at risk in exchange for someone else’s political agenda. We are acting with urgency on this case because this illegal rule is set to take effect next week. It must be stopped.
The states joining Utah in the lawsuit are Alabama, Alaska, Arkansas, Florida, Georgia, Idaho, Indiana, Iowa, Kansas, Kentucky, Louisiana, Mississippi, Missouri, Montana, Nebraska, New Hampshire, North Dakota, Ohio, South Carolina, Tennessee, Texas, Virginia, West Virginia, and Wyoming.
Many of these states, most notably Texas, Florida, Louisiana, and Kentucky, have already launched their own actions against ESG funding in their state pension plans.
Other attorneys general have weighed in on the lawsuit.
“This is about protecting retirees in Louisiana and the rest of the country,” said Louisiana AG Jeff Landry. “Investments should be made using sound economic principles, not woke policies. These firms have a responsibility to invest with their client’s best financial interests in mind rather than Biden’s disastrous agenda.”
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