25 States Sue Biden Admin Over ESG Nonsense

FIRST ON FOX On Thursday, 25 states filed a federal suit against the Biden administration claiming that a rule allowing retirement plan administrators to factor in a new rule allowed them to do so. environmental and social issues It is illegal to invest in investment decisions.

The lawsuit — led by Utah Attorney General Sean Reyes and joined by 24 other states including Louisiana, Texas and Virginia — challenges a Department of Labor (DOL) rule unveiled in November and which is set to go into effect on Jan. 30. This rule would allow fiduciaries to factor in so-called “simple” issues. environment, social and governance (ESG) considerations The states claimed that this could adversely affect the financial interests of their customers by transferring money into Americans’ retirement accounts.

“The Biden administration is promoting its climate change agenda by putting everyday people’s retirement money at risk,” FOX Business was informed by Reyes in a statement. “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,” He went on. “We are acting with urgency on this case because this illegal rule is set to take effect next week. It must be stopped.”

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Sean Reyes, Utah Attorney-General, speaks during a news conference at the Supreme Court on Sept. 9, 2019. (Andrew Harrer/Bloomberg via Getty Images/Getty Images

The challenge was filed in Texas by two dozen states and sought a preliminary order from the court to stop the DOL implementing the rule. This would be until a final ruling has been made in the case.

The lawsuit alleges that the DOL violated 1974’s Employee Retirement Income Security Act (ERISA). The law protects the retirement income. 152 million U.S. workersThe nation’s assets are approximately $12 trillion. This covers more than two thirds of its adult population.

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The states pointed out that ERISA requires that retirement plan assets be held solely for the purpose of providing benefits to plan participants and that fiduciaries act only in the best interests of those participants. These rules have been ruled by the Supreme Court. “benefits” They are defined as “financial benefits.”

Labor Secretary Marty Walsh announced the rule on Nov. 22. “help plan participants make the most of their retirement benefits.” Lisa Gomez, DOL Assistant Secretary to Employee Benefits Security Lisa Gomez said that ESG and climate change are important factors for investors.

Pictured in Pennsylvania, June 2, 2021 by Secretary of Labor Marty Walsh (Tom Williams/CQ Roll Call, Inc via Getty Images/Getty Images

“This is about protecting retirees in Louisiana and the rest of the country,” Louisiana Attorney General Jeff Landry told FOX Business. “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.”

Liberty Energy CEO Chris Wright added that his company was filing suit because of the regulation “makes it harder to protect our workers’ retirement security and impedes investing in our industry and its ability to provide reliable and affordable energy to our communities.”

“This rule is an affront to every American concerned about their retirement account,” In a statement to FOX business, Ken Paxton, Texas Attorney General, said that. “The fact that the Biden Administration is now opting to risk the financial security of working-class Americans to advance a woke political agenda is insulting and illegal.”

“For generations, federal law has required that fiduciaries place their clients’ financial interests at the forefront, and I intend to fight the Biden Administration in court to ensure that they cannot put hard-working Americans’ retirement savings at risk,” He added

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In recent years, financial institutions and massive asset managers have been increasingly focusing on ESG factors in their investment decisions. They have a particular focus on companies that are able to curb climate change and reduce their carbon footprints.

Companies like BlackRockVanguard and State Street are the leaders in the ESG movement. Together, they manage trillions in assets.

Responding to this growing movement, Republican state financial officers as well as attorneys general have cancelled contracts with the firms, and threatened legal action regarding how they manage customers’ investments.

“Everyday Americans are having their investment dollars used against them as those in power favor a political agenda over financial returns,” FOX Business spoke with Derek Kreifels (CEO of the State Financial Officers Foundation), who has been instrumental in organizing state and local oppositions to the ESG movement. “It is the actions like that of these attorneys general that will ensure Americans are safe from activist-investors and progressive elites who would rather focus on politics than upholding their fiduciary duty.” 

“Leaders at the state level, from treasurers to attorneys general, are sending a message to Wall Street and the administrative state that we will refuse to allow the American people to be taken advantage of and we will continue to fight to ensure their hard-earned dollars aren’t being used to push an agenda that runs counter to our values,” Kreifels,

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Will Hild, executive director of consumer group Consumers’ Research, also applauded the challenge, saying it was a significant action against the “left’s woke agenda.”

“Attorney General Reyes is leading the way, highlighting how dangerous ESG is and why it is important for the states to stop [BlackRock CEO] Larry Fink and his ESG elitist friends from playing politics with the investments and retirements of hard-working Americans,” Hild spoke to FOX Business. 

“As America’s oldest consumer protection agency, we will continue to support state officials in their efforts to protect the American people from the dangers of ESG and companies that are choosing politics over profits.”

Utah, Alabama and Alaska joined the lawsuit against this administration.

The Department of Labor did not immediately respond to a request to comment.

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