The Department of Labor (DOL) is contesting a lawsuit filed by a coalition of 25 state attorneys general that challenged its 2022 ESG regulation.
The lawsuit claims that the 2022 Rule “undermines key protections for retirement savings of 152 million workers—approximately two-thirds of the U.S. adult population and totaling $12 trillion in assets—in the name of promoting environmental, social, and governance (‘ESG’) factors in investing.”
The “ESG rule” became effective on Jan. 30, 2023. The DOL had moved for a change in venue for the lawsuit (from the federal court in Texas to Washington, DC), but that was denied.”
The Labor Department asserted that “the rule is the product of reasoned decision making, and is not arbitrary and capricious.