Twenty-One AGs Sent Letter to Congress Backing ESG Retirement Rule as Congress Attempted to Overturn It

California Attorney General Rob Bonta led a coalition of 21 attorneys general in a letter to Congress in support of a proposed rule by the Department of Labor that would allow fiduciaries to consider environmental, social, and governance (ESG) factors in investment decisions for employee retirement plans. Congress passed a resolution under the Congressional Review Act to overturn the rule, though President Biden is expected to veto it. In their letter, the AGs explained that the rule was backed by strong data as well as broad stakeholder support, and that the arguments for overturning it “cannot survive even the barest of scrutiny.” President Biden later vetoed the resolution.