The Biden administration has requested a federal judge to reject a lawsuit brought by Republican-led states that seeks to overturn a rule allowing socially-conscious investing in employee retirement plans. The rule replaces the Trump administration’s restrictions on considering environmental, social, and governance (ESG) factors in investment decisions. A coalition of 25 states, led by Utah and Texas, filed the lawsuit in January, claiming that the rule could jeopardize the retirement savings of Americans by permitting investments based on political agendas. The Biden administration argued that the rule mandates retirement plans to prioritize financial factors but also acknowledges that issues such as climate change and social justice can impact a company’s long-term financial health. The case has been assigned to U.S. District Judge Matthew Kacsmaryk, a conservative appointee of former President Donald Trump, but no hearing date has been set.
resource: https://esgnews.com/biden-admin-moves-to-nix-us-states-challenge-to-esg-investing-rule/