09.21.23

U.S. Judge Will Not Block Biden Rule on Socially Conscious Investing

by: Daniel Wiessner; Dan Whitcomb

A federal judge in Texas on Thursday rejected a bid by 25 states to block a Biden administration rule allowing employee retirement plans to consider environmental, social and governance (ESG) issues in investment decisions. U.S. District Judge Matthew Kacsmaryk in Amarillo declined to block the rule, which took effect January 30, granting a petition by President Joe Biden's administration to dismiss the states' lawsuit claiming the rule will jeopardize millions of Americans' retirement savings. Kacsmaryk rejected the states' claim that the rule violates the federal law governing retirement plans. The rule still requires that financial considerations come first and does not create "an overarching regulatory bias in favor of ESG strategies," the judge wrote.

Read the full article on Reuters