March 2, 2023
Yesterday, the U.S. Senate voted to overturn a Labor Department rule that allowed retirement-plan managers to consider Environmental Social Governance factors when making investment decisions. The Utah Attorney General’s Office has also filed a lawsuit on this issue, which could be important if the President vetoes the bill as expected.
Attorney General Reyes said,
“We applaud Congress for its resolution reversing an ESG rule threatening Americans’ retirement savings. And if President Biden vetoes the resolution, state AGs will push forward in the courts to ensure that hard-working Americans’ lifesavings aren’t used for political agendas.”
The Department of Labor rule requires fund managers to consider subjective social factors, like a company’s position on climate change, instead of traditional return on investment criteria. This standard could reduce the retirement savings of more than 152 million Americans.