Author: James McAllister
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Democratic state financial officers support ESG in letter to regulators
Seventeen Democratic state financial officers sent a letter to the acting heads of the Securities and Exchange Commission (SEC) and the Department of Labor (DOL), asking them to not restrict the use of environmental, social, and governance (ESG) factors in financial decisions. The letter responds to one sent last month by Republican state financial officers…
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Judge issues second decision upholding Biden ESG labor rule
U.S. District Judge Matthew Kacsmaryk upheld the Biden administration’s Labor Department rule allowing the use of ESG investment considerations in ERISA-governed retirement plans for a second time. The decision again rejected the legal challenge from 26 Republican attorneys general. Kacsmaryk’s decision upheld the Biden administration’s Labor Department rule without relying on Chevron deference, which was…
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Oklahoma launches effort to oppose corporate DEI
Oklahoma Treasurer Todd Russ (R) announced plans to oppose corporate diversity, equity, and inclusion (DEI) programs through shareholder proposals using its $2 billion Tobacco Settlement Endowment Trust. DEI is typically associated with the social component of ESG. Treasurer Russ has argued corporations should be politically neutral and avoid using corporate money for DEI and ESG…
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Republican state officials request ESG clarification
Twenty-two Republican state financial officers—treasurers, auditors, and a comptroller—sent a letter Jan. 28 asking the U.S. Department of Labor (DOL) and the Securities and Exchange Commission (SEC) to issue new rules clarifying and updating ESG policies enacted or proposed during the Biden administration. The DOL and the SEC each issued ESG and sustainability investing rules…
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Texas sends letter opposing financial firm DEI policies
Ten states, led by Texas, have requested information from BlackRock, Goldman Sachs, and others regarding their diversity, equity, and inclusion (DEI) policies. The Jan. 23 letter argued business and investment decisions based on race, sex, and other diversity criteria could violate financial firms’ fiduciary duty to focus on maximizing shareholder value. Texas and other states…
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Banks exit net-zero alliance
What’s the story? Three major banks announced over the last several days that they are leaving the Net-Zero Banking Alliance. Morgan Stanley, Citigroup, and Bank of America indicated they would exit the group. Why does it matter? The announcements follow similar actions from Goldman Sachs and Wells Fargo last month. They are part of a…
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BlackRock leaves net-zero alliance, NZAM suspends operations
BlackRock—the world’s largest asset manager—announced Jan. 9 that it is leaving the Net-Zero Asset Managers Initiative (NZAM), a United Nations-affiliated group promoting emission reductions. NZAM announced Jan. 13 that it is suspending operations and removing the commitment statement and list of signatories from its website. The group said in a statement it will reevaluate its…
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Indiana pension board removes assets from BlackRock’s management
The Indiana Public Retirement System’s trustees voted last week to stop using BlackRock for asset management services. The board is considering three firms as replacements: State Street, UBS, and Northern Trust. Indiana Treasurer Daniel Elliott (R) argued in August that BlackRock’s ESG commitments made the firm ineligible for contracts under the state’s 2023 anti-ESG law.…
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Trump announces pick for next SEC chairman
President-elect Donald Trump announced last week that he will nominate Paul Atkins as the next Securities and Exchange Commission (SEC) chairman. Atkins’ views on ESG differ from those of current SEC Chairman Gary Gensler. For example, Atkins wrote a letter opposing the SEC’s 2022 proposed climate disclosure rules, arguing they overstepped the agency’s delegated authority.…
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Eleven states sue asset managers, alleging antitrust violations
Eleven Republican-led states on Nov. 27 sued BlackRock, Vanguard, and State Street—the Big Three passive asset managers—arguing the firms violated antitrust laws. The states said the firms’ collective ESG engagement hurt coal production, raising consumer energy costs. The firms argued they operate independently and compete with one another. BlackRock, Vanguard, and State Street hold large…