This Thursday, 25 states filed a federal lawsuit against the Biden administration on the grounds that it is violating the law with the rule that allows retirement plan administrators to take environmental, social and governance (ESG) issues into account in investment decisions.
Sean Reyes, Utah's attorney general, was the one who led the lawsuit that was later joined by 21 other states in addition to Virginia, Texas and Louisiana, all with the intention of stopping the rule that would take effect on January 30 and that would allow trustees mess with American retirement accounts.
The group of states points out that the Department of Labor (DOL) violates the Employee Retirement Income Security Act (Erisa) which safeguards the retirement income of more than 150 million Americans.
"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," Reyes explained.
The prosecutor assured that he and the other states are taking the issue as a priority because the intention is to stop the rule before it goes into effect next week. In fact, a request has already been filed with the court for a preliminary injunction to prevent the rule from being implemented before a ruling is issued.
.@HamLincLaw is proud to join 25 states in suing the Biden administration for its illegal attempt to turn ERISA-protected pensions into ESG slush funds. We represent @JamesRCopland. pic.twitter.com/SfsCIEHFrG
— (((tedfrank))) (@tedfrank) January 26, 2023
"The fact that the Biden Administration is now opting to risk the financial security of working-class Americans to advance a woke political agenda is insulting and illegal," said Texas Attorney General Ken Paxton.
Jeff Landry, Louisiana's attorney general, also gave his opinion and explained that investments should be made using "sound economic" principles with the best financial interests of his clients in mind rather than Biden's "disastrous agenda."
Massive asset managers and financial institutions are increasingly being conditioned to focus on ESG factors factors when making key investments. This means investing in companies according to their efforts to combat climate change. The problem is that this classification system is being used to push the left's agenda.
According to Heritage Foundation digital content manager Michelle Cordero, you can think of ESG criteria as a credit score, where, if you don't score "high enough on their woke meter, you could be canceled."
Fact Check: TRUE ✅
That is our future. Lack of investment in critical commodities (energy and metals) due to ESG.
Plus we will have massive money printing to cover deficits. pic.twitter.com/TvfltZo8Dk
— Wall Street Silver (@WallStreetSilv) January 16, 2023
DeSantis eliminated the ESG criteria.
Florida Governor Ron DeSantis has already taken a step forward to protect investments and achieve the "maximum rate of return" by eliminating ESG criteria.
"The proliferation of ESG throughout America is a direct threat to the American economy. Every day Floridians invest their hard-earned money with the desire to maximize profit and have a secure financial future. Unfortunately, woke corporate elites continue to institute ESG practices in an effort to promote a radical agenda at a cost to everyday consumers," stated the DeSantis administration in a press release.
The governor said he would not allow large investors to discriminate against consumers based on political, religious or social beliefs.