25 states sue Biden administration over ESG rules

 Fox Business:

A group of 25 states on Thursday filed a federal lawsuit against the Biden administration, arguing a recent rule allowing retirement plan managers to factor environmental and social issues into investment decisions violated the law.

The lawsuit — led by Utah Attorney General Sean Reyes and joined by 24 other states including Louisiana, Texas and Virginia — challenges a Department of Labor (DOL) rule unveiled in November and which is set to go into effect on Jan. 30. The rule would open the door for fiduciaries to factor so-called environment, social and governance (ESG) considerations into Americans' retirement accounts, an action the states argued could significantly harm the financial interests of customers.

"The Biden administration is promoting its climate change agenda by putting everyday people’s retirement money at risk," Reyes told FOX Business in a statement. "Americans are already suffering from the current economic downturn."

"Permitting asset managers to direct hard-working Americans’ money to ESG investments puts trillions of dollars of retirement savings at risk in exchange for someone else’s political agenda," he continued. "We are acting with urgency on this case because this illegal rule is set to take effect next week. It must be stopped."

The two dozen states filed the challenge in a federal district court in Texas and asked the court for a preliminary injunction to prevent the DOL from implementing the rule until a ruling had been issued in the case.

In the lawsuit, the states allege that the DOL violated the Employee Retirement Income Security Act (ERISA) of 1974. The law safeguards the retirement income of 152 million U.S. workers, equivalent to more than two-thirds of the nation's adult population, and covers roughly $12 trillion in assets.

LOUISIANA DIVESTS FROM BLACKROCK OVER ESG POLICIES: 'WOULD DESTROY LOUISIANA’S ECONOMY'

The states noted that ERISA requires retirement plan assets to be held for the exclusive purpose of providing benefits to participants in the plan and that the fiduciaries must act solely in the interest of said participants. The Supreme Court has previously ruled that such "benefits" are defined as "financial benefits."
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The recent rule appears to be part of the Biden administration's Big Green agenda.  It is an attack on the fossil fuels industry which is important to the economy of many states.  Big Green is about replacing that industry with inefficient and unreliable wind and solar energy among other things.  The states argue that the Big Green agenda will not be as profitable for retirement funds and will hurt industries within the states.

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