"This would mean an investor who put $10,000 into an average global ESG fund in 2017 would have about $13,500 today, compared with $15,250 if he had invested in the broader market," the attorneys general said. "So these asset managers are also threatening the financial security of two-third of the United States adult population."
Labor said the rule reopens that door and fits in with President Biden’s executive order from May 2021 that directed the government to enact policies that "protect the life savings and pensions of America’s workers and families from the threats of climate-related financial risk." According to Labor, giving fiduciaries more leeway to invest in ESG companies is one of those policies.
"Given the detrimental effects of this brazen violation of federal law will have on millions of Americans, we urge Congress to disapprove the 2022 Rule," the attorneys general wrote in Tuesday’s letter. "Under the [Congressional Review Act], Congress has the power to erase this federal rule by issuing a joint ruling of disapproval."