Tag: esg
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Department of Labor announces ESG retirement plan rule
The Department of Labor (DOL) announced Sept. 4 that it plans to issue a new rule governing the use of environmental, social, and governance (ESG) factors in retirement plans covered by the Employee Retirement Income Security Act of 1974 (ERISA). The department’s Employee Benefits Security Administration listed the issue in its semi-annual regulatory agenda as…
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Net Zero Banking Alliance to suspend operations
On Aug. 27, the Net Zero Banking Alliance (NZBA) announced that it is suspending operations, as a number of large banks have exited the group over the last several months. NZBA has said its remaining members will vote to determine whether it should remain a member-based group or transition to an organization that provides guidance…
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Democratic state financial officers send letter to asset managers
Seventeen Democratic financial officers (16 state officers, plus New York City Comptroller Brad Lander) sent a letter to 18 of the largest asset management firms on Aug. 15. The officials asked the firms to confirm their commitment to considering climate and other ESG factors in their long-term return models. The Democratic officials said their letter…
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Judge denies effort to stop California climate reporting law
U.S. District Judge Otis Wright II denied a motion from the U.S. Chamber of Commerce and other plaintiffs seeking a preliminary injunction to block enforcement of SB253 and SB261, two California laws that require corporations to report their Scopes 1, 2, and 3 emissions. The laws are set to go into effect in 2026 and…
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UBS quits NZBA
UBS, Switzerland’s largest bank, announced Thursday it is leaving the Net-Zero Banking Alliance (NZBA), joining several recent global departures from the coalition. UBS was a founding member of the NZBA and is the third major bank to leave in as many weeks. The departures could limit the alliance’s ability to set shared targets and monitor…
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Florida attorney general launches investigation of climate groups
Florida Attorney General James Uthmeier (R) announced yesterday an investigation into two climate groups—the Climate Disclosure Project (CDP) and the Science Based Targets Initiative (SBTi)—over alleged deceptive trade practices and antitrust violations. Uthmeier argued SBTi “sells companies validation of their climate goals—then directs them back to CDP to report their progress, creating what appears to…
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ESG opponents argue BlackRock still boycotts Texas energy
Consumers’ Research (CR), a nonprofit critical of ESG investing, and the American Energy Institute (AEI), an energy advocacy group, released a report arguing BlackRock, the world’s largest asset manager, is still boycotting Texas energy. The report contradicts BlackRock’s claims and those made by former Texas Comptroller Glenn Hegar (R), who earlier this summer removed the…
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Missouri attorney general investigates proxy advisory services
Missouri Attorney General Andrew Bailey (R) announced last week his office is investigating Institutional Shareholder Services (ISS) and Glass Lewis, the two largest U.S. proxy advisory firms, alleging they prioritized political agendas over fiduciary duties in their voting recommendations. ISS and Glass Lewis have drawn recent attention in ESG debates. Critics argue their combined market…
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States passed 27 bills either supporting or opposing environmental, social, and governance (ESG) investing this year
In case you’re not familiar, here’s a quick background on ESG. ESG investing is an asset management approach that considers environment, social issues, and corporate governance practices. It’s a type of stakeholder investing which says shareholder returns should not be the only goal. Stakeholder investing contrasts with traditional approaches that exclusively consider financial factors like…
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Oregon governor signs ESG investing law
Oregon Gov. Tina Kotek (D) signed the Climate Resilience Investment Act on June 26, directing the state’s $96 billion Public Employees Retirement System to study the effects of its investments on climate change and to “pursue the goal of reducing the carbon intensity of the fund.” The law is among the first to directly require…