Republican-led states filed a federal lawsuit Thursday against the\u00a0Department of Labor\u00a0over a rule set to take effect Monday that would allow retirement fund managers to consider climate change and other factors under environmental, social and governance investing principles, or ESG.
\nThe attorneys general from 25 states argued that the ESG rules soon to be enacted would violate federal law, saying fiduciaries could jeopardize Americans\u2019 retirement funds and not focus solely on maximizing returns.
\n\u201cThe Biden administration is promoting its climate change agenda by putting everyday people\u2019s retirement money at risk,\u201d Utah Attorney General Sean Reyes, the Republican who led the lawsuit, said in a statement. \u201cPermitting asset managers to direct hard-working Americans\u2019 money to ESG investments puts trillions of dollars of retirement savings at risk in exchange for someone else\u2019s political agenda.\u201d
\nThe\u00a0Labor Department\u00a0did not immediately respond to a request for comment.
\nThe action is part of a broader, multi-billion-dollar war being waged against ESG investing across the country, a campaign by GOP state officials who have collectively divested billions in state pension funds from large financial institutions in the name of combating \u201cwoke\u201d capitalism.
\nThe GOP-led states alleged in their lawsuit that the\u00a0Labor Department\u00a0is violating the Employee Retirement Income Security Act of 1974, which aims to offer consumer protections with minimum standards for retirement savings to prevent mismanagement and abuse.<\/p>\n