Utah AG Sean Reyes Leads 24 Attorneys General in Fight to Block Biden’s ‘Woke’ ESG Investment Rule
FGA Praises the Unified Effort of State Officials to Combat the Left’s Climate Agenda
Naples, FL – Today, the Foundation for Government Accountability (FGA) praised the leadership of 25 state attorneys general who filed a lawsuit against the Biden administration seeking to block a Department of Labor (DOL) rule that allows retirement plan managers to use environment, social, and governance (ESG) considerations when making investments. The DOL rule stems from the Biden administration’s executive order pushing federal agencies to adopt climate agenda policies to limit domestic energy production.
Utah Attorney General Sean Reyes filed the lawsuit in Texas federal court on January 26, with the support of 24 other Republican attorneys general. The lawsuit seeks a preliminary and permanent injunction to stop the DOL rule from going into effect on January 30.
“If this rule is allowed to take effect, it would strip away investor protections for the assets of two-thirds of America’s adult population and replace them with radical ESG principles that will apply to $12 trillion in assets,” said David Craig, FGA senior legal fellow. “The legal argument is sound: The DOL rule violates both the Administrative Procedure Act (APA) and the Employee Retirement Income Security Act (ERISA) and should be halted immediately to protect investors and their families. The plaintiffs, particularly the state attorneys general that have brought this suit are to be commended for standing up for our nation’s current and future retirees.”
Politically motivating investment strategies do not focus on generating the highest return for retirees, pension holders, or taxpayers. The decision to put an agenda ahead of financial returns not only harms investors, but has been used by the Biden administration to wage war on vital American industries. Further, ESG investing is deeply unpopular—71 percent of voters are strongly opposed to their money being used to push a political agenda.
“This rule is the latest example of bureaucratic zealots using ESG to regulate the wallets of everyday Americans,” said Eric Bledsoe, FGA senior fellow. “It is encouraging to see state leaders, like these attorneys general, refusing to let Americans’ retirement savings be sacrificed on the climate change altar.”
To learn more, visit FGA’s solutions page on Fighting the “Woke” ESG Agenda.
The Foundation for Government Accountability (FGA) is a non-profit, multi-state think tank that promotes public policy solutions to create opportunities for every American to experience the American Dream. To learn more, visit TheFGA.org.