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Democratic state financial officers support ESG in letter to regulators (2025)
| Environmental, social, and corporate governance |
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| • What is ESG? • Enacted ESG legislation • Arguments for and against ESG • Opposition to ESG • Federal ESG rules • ESG legislation tracker • Economy and Society: Ballotpedia's weekly ESG newsletter |
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 asking the Biden administration to limit ESG considerations.
During the Biden administration, Republican state financial officers opposed federal efforts to advance ESG policies. With a Republican administration now in office, Democratic financial officers are advocating for ESG in response to federal regulatory actions.
According to ESG Dive:
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The Democratic finance officials took particular issue with the Republican officials’ letter relying heavily on a federal judge’s ruling against American Airlines in a lawsuit over the management of its retirement plans. The Republican finance officials used U.S. District Court judge Reed O’Connor’s ruling as evidence that the incorporation of factors like ESG is being used to pursue non-pecuniary goals. The officials included state auditors, treasurers, controllers and comptrollers from New York City, California, Illinois and 12 other states who said that such a characterization of the use of environmental, social and governance factors is 'incorrect and dangerously misleading.' … Officials from Connecticut, Colorado, Delaware, Maryland, Massachusetts, Minnesota, Nevada, New Mexico, Oregon, Rhode Island, Vermont and Washington also signed onto the letter. They said that risks related to climate change, governance failures and systemic issues are 'present-day financial realities affecting market valuations, insurance costs, supply chains and infrastructure resilience.'[1] |
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See also
- Environmental, social, and corporate governance (ESG)
- Economy and Society: Ballotpedia's ESG newsletter
External links
Footnotes
- ↑ Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source.
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