Tag: esg
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Federal court rules in favor of Biden ESG retirement rule
Judge Matthew J. Kacsmaryk of the United States District Court for the Northern District of Texas issued a ruling on Sept. 21 refusing to block the Biden Labor Department’s investment rule allowing ESG considerations in retirement plans governed by the Employee Retirement Income Security Act of 1974 (ERISA). Texas and Utah are leading 24 other…
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Vanguard joins BlackRock in reducing support for ESG shareholder proposals
Fox Business reported on August 29 that Vanguard—the second largest asset manager in the world and the largest manager of passive funds—reduced its support for pro-ESG proxy proposals during the past shareholder season. The report followed news that BlackRock, the world’s largest asset manager (measured by assets under management) also supported fewer ESG proposals. Ballotpedia…
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BlackRock announces plans to allow investors to vote their own proxies
The Big Three passive asset management firms—BlackRock, State Street, and Vanguard—have been criticized for using investors’ money in pursuit of political goals. The firms use the funds that they invest on behalf of their clients and vote the proxies that, outside of a pooled index or mutual fund, investors would typically vote themselves. ESG critics…
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Congressmen send letters requesting ESG information from Big Three asset managers
House Judiciary Committee Chairman Jim Jordan (R-Ohio), along with Reps. Thomas Massie (R-Ky.) and Dan Bishop (R-N.C.), sent letters to the Big Three passive asset management firms—BlackRock, State Street, and Vanguard—on July 6 requesting information about their efforts to combat climate change through ESG. Jordan said such efforts could violate antitrust laws. Ballotpedia tracks support…
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House Republican introduces bill opposing ESG in retirement funds
Congressman Andy Barr (R-Ky.) introduced a bill on June 21 opposing the Biden Labor Department’s rule allowing the use of ESG in retirement plan investments. Both chambers recently passed a Congressional Review Act (CRA) resolution overturning the Labor Department rule, but President Joe Biden (D) vetoed that legislation. Congressman Barr introduced the new bill in…
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North Carolina governor vetoes state bill opposing ESG
Gov. Roy Cooper, a Democrat and ESG supporter, on June 23 vetoed a bill banning the use of ESG in state investments. The bill previously passed the state House on May 3 and the state Senate on June 13. The bill now heads back to the legislature, which is expected to have the votes to…
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States send letters and questionnaires inquiring about ESG at firms
Twenty-one state financial officers signed letters on May 15 that were sent to large asset management firms and two proxy advisory services (Glass-Lewis and Institutional Shareholder Services, who combined represent 95% of the proxy advisory business), requesting answers to questions about the use of ESG and the justification for doing so as legal fiduciaries of…
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Biden executive order incorporates environmental justice into federal agency missions
President Joe Biden (D) issued an executive order on April 21 creating a White House Office of Environmental Justice and directing all federal agencies to prioritize what it described as environmental justice in their policymaking whenever and however possible. According to Fox News: “President Biden will sign an executive order Friday in the Rose Garden…
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New Hampshire governor signs executive order prohibiting ESG in state investments
New Hampshire Gov. Chris Sununu (R) signed an executive order April 11 directing state executive agencies to invest their funds based on expected financial returns (not based on ESG investing criteria), making the state the latest to push back against ESG in public investments. According to NH Journal: “Just weeks after the Biden administration imposed…