Tag: Environmental Social and Corporate Governance
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Labor Department drops defense of ESG rule
The Department of Labor (DOL) filed court documents last week indicating it will stop defending a Biden-era rule allowing ESG considerations in retirement plans. The agency said it plans to propose a new rule to replace it. The rule has faced Republican opposition since 2022 but survived both legal and legislative challenges, including a congressional…
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ESG critic appointed to Labor Department
The Department of Labor this month appointed Justin Danhof—a critic of ESG investing and a proxy voting and corporate engagement expert—as a senior policy advisor in the Employee Benefits Security Administration. Danhof’s appointment brings an anti-ESG voice into a role that shapes guidance for retirement plans. Danhof previously led the Free Enterprise Project at the…
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Fannie Mae closes ESG department
Fannie Mae—the Federal National Mortgage Association, a government-sponsored enterprise (GSE)—shut down its ESG department, firing over 30 employees, including Laurel Davis, head of the company’s mission and impact program. The closure follows similar moves at Freddie Mac and reflects a broader shift away from ESG and DEI initiatives promoted during the Biden administration. Leadership changes…
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Fifteen state AGs ask Business Roundtable to stop DEI
Fifteen state attorneys general sent a letter to Business Roundtable, an organization of chief executive officers (CEOs), urging the organization and its member companies to withdraw their support for diversity, equity, and inclusion (DEI) initiatives. The Republican state attorneys general are asking the business group to reverse its perceived support of ESG issues. The group…
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Tennessee drops Wells Fargo investigation
Tennessee Attorney General Jonathan Skrmetti (R) last week closed his investigation into whether Wells Fargo coordinated with other financial institutions to promote net-zero climate policies in violation of antitrust laws. The investigation was part of a broader effort by Republican attorneys general to challenge coordination among financial institutions on climate policy. Skrmetti closed the case…
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Florida attorney general investigates proxy advisors
Florida Attorney General James Uthmeier (R) announced last week that his office is launching an antitrust investigation into Glass Lewis and Institutional Shareholder Services (ISS), the two largest proxy advisory firms. ISS and Glass Lewis control over 90% of the proxy advisory market and can influence how institutional investors, including pension funds, vote in corporate…
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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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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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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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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…