Coalition of states challenge rule on ESG consideration in retirement plans

A coalition of 25 states led by Texas and Utah filed a lawsuit seeking to strike down a Biden administration rule allowing retirement plans to consider environmental, social and governance factors such as climate change and racial justice when selecting investments, Reuters reports. The states filed a complaint in a federal court in Amarillo, Texas, on Jan. 26 arguing that the rule finalized in November will lead many retirement plans to focus on a social agenda rather than long-term financial stability for investors.