The Labor Department claims the ESG 401(k) objection is based on a “false premise.”
The US Labor Department has responded to the more than two dozen red states, energy companies, and workers that have filed lawsuits to overturn the rule allowing socially aware retirement saving, claiming that the objections are based on a “false assumption.”
On Tuesday, March 28, 2023, regulators filed nearly identical opposition briefs in separate federal court cases in Texas and Wisconsin, stating that the ESG investing guideline confirms the department’s long-held view that financial returns are crucial and that “collateral benefits” should be considered only when two or more investment alternatives are economically similar. (more…)