Enormous amounts of executive and legislative political power in Washington are being spent in the clash over a whether private-sector retirement plans can even consider environmental or social impacts in the investments they choose. Regulators are facing at least two federal lawsuits in Texas and Wisconsin challenging their authority to promulgate that kind of rule in the first place while states crack down on public pensions that contract with environmentally friendly managers.
Some of that adversity came to a head late Wednesday when Senate Republicans convinced two moderate Democrats up for reelection next year to support passing a House resolution that would bar the US Labor Department from continuing to enforce its worker benefit rule. The president has pledged to veto it.
Source: Trillions at Stake as 401(k)s Become ESG Political Footballs
