Post by account_disabled on Feb 18, 2024 3:32:57 GMT -5
ESG investments, also called responsible investments, represent a call from different international organizations to end dependence on fossil fuels, such as oil and coal, which contribute enormously to global warming. This in order to accelerate the adaptation and innovation of clean technologies, at a lower cost, and with less impact for humanity and the planet.
However, according to the Washington Middle East Mobile Number List Examiner , a coalition of 25 US states, led by officials from Texas and Utah, have sued for pushing ESG to Joe Biden. The offensive seeks to repeal a rule from the current president's administration, which allows a boost to responsible investing, as retirement plan administrators consider environmental, social and governance (ESG) factors. when making investments.
The ESG battle
The measure is part of the most recent attacks against ESG that the Republican political current has undertaken in that country. According to Republicans, ESG investing imposes progressive policies that threaten shareholder capitalism, which says that corporations have one purpose: to make as much money as possible and that to try to do anything else would be to go against their nature.
It was on Thursday of the last week of January when the states filed the letter in federal court in Amarrillo, Texas, arguing that the rule causes many retirement plans to focus investment on the social agenda, rather than long-term financial stability. investor term.
The rule in question was announced in 2022 at the U.S. Department of Labor and would allow, but not require, fiduciaries to weigh ESG factors when making investment decisions for retirement accounts.
«Americans are already feeling the current economic downturn. “Allowing asset managers to direct working Americans’ money into ESG investments puts trillions of dollars of retirement savings at risk for someone else’s political agenda.”
Sean Reyes Attorney General of Utah.
Biden administration sued for boosting ESG
While the rule still requires fund managers to prioritize the financial interests of plan participants and does not allow potential profits to be superseded by ESG goals, attorneys general have sued for pushing ESG. They argue that the rule violates the Employee Retirement Income Security Act, which requires that retirement plan assets must be invested solely for the benefit of participants.
According to the Attorney General of Utah, it is necessary to act urgently and annul the rule, given that it, promoted by the Biden government, puts the retirement money of ordinary people at risk. The wave of ESG attacks in the last year has also touched the asset management giant BlackRock , which has spoken out openly in favor of ESG investments as a latent concern that climate risks are a risk to investments.
This data is confirmed by Jon Hale, director of sustainability research at Morningstar, a financial services company, who notes: "For the asset managers who manage [investment funds] and the public companies in which they invest, things like the change climate are real and represent a real threat to many companies.
sued for pushing ESG
According to an analysis by Ceres – a non-profit organization focused on sustainability – more than 50% of the companies listed in the S&P 500, Russell 3000, MSCI World and MSCI EM indices are exposed to risks due to lack of water, which They range from medium to high. Negative consequences encompass impacts on sectors as diverse as agriculture, mining, utilities, technology, consumer staples and energy.
But, even though the current government is being sued for promoting ESG, these criteria have gained visibility and attention from investors who know that climate change is already affecting supply chains. Since, in 2022, the US experienced a year of storms, floods, wildfires and droughts that caused a total of 165 billion dollars in damages.
However, according to the Washington Middle East Mobile Number List Examiner , a coalition of 25 US states, led by officials from Texas and Utah, have sued for pushing ESG to Joe Biden. The offensive seeks to repeal a rule from the current president's administration, which allows a boost to responsible investing, as retirement plan administrators consider environmental, social and governance (ESG) factors. when making investments.
The ESG battle
The measure is part of the most recent attacks against ESG that the Republican political current has undertaken in that country. According to Republicans, ESG investing imposes progressive policies that threaten shareholder capitalism, which says that corporations have one purpose: to make as much money as possible and that to try to do anything else would be to go against their nature.
It was on Thursday of the last week of January when the states filed the letter in federal court in Amarrillo, Texas, arguing that the rule causes many retirement plans to focus investment on the social agenda, rather than long-term financial stability. investor term.
The rule in question was announced in 2022 at the U.S. Department of Labor and would allow, but not require, fiduciaries to weigh ESG factors when making investment decisions for retirement accounts.
«Americans are already feeling the current economic downturn. “Allowing asset managers to direct working Americans’ money into ESG investments puts trillions of dollars of retirement savings at risk for someone else’s political agenda.”
Sean Reyes Attorney General of Utah.
Biden administration sued for boosting ESG
While the rule still requires fund managers to prioritize the financial interests of plan participants and does not allow potential profits to be superseded by ESG goals, attorneys general have sued for pushing ESG. They argue that the rule violates the Employee Retirement Income Security Act, which requires that retirement plan assets must be invested solely for the benefit of participants.
According to the Attorney General of Utah, it is necessary to act urgently and annul the rule, given that it, promoted by the Biden government, puts the retirement money of ordinary people at risk. The wave of ESG attacks in the last year has also touched the asset management giant BlackRock , which has spoken out openly in favor of ESG investments as a latent concern that climate risks are a risk to investments.
This data is confirmed by Jon Hale, director of sustainability research at Morningstar, a financial services company, who notes: "For the asset managers who manage [investment funds] and the public companies in which they invest, things like the change climate are real and represent a real threat to many companies.
sued for pushing ESG
According to an analysis by Ceres – a non-profit organization focused on sustainability – more than 50% of the companies listed in the S&P 500, Russell 3000, MSCI World and MSCI EM indices are exposed to risks due to lack of water, which They range from medium to high. Negative consequences encompass impacts on sectors as diverse as agriculture, mining, utilities, technology, consumer staples and energy.
But, even though the current government is being sued for promoting ESG, these criteria have gained visibility and attention from investors who know that climate change is already affecting supply chains. Since, in 2022, the US experienced a year of storms, floods, wildfires and droughts that caused a total of 165 billion dollars in damages.