Several state officials demand feds protect Americans' retirement plans by clearly regulating ESG investments

Published On Jan 29, 2025, 7:05 PM

Several state financial officers have urged federal regulators to establish clearer guidelines for ESG (Environmental, Social, and Governance) investing, particularly regarding its impact on Americans' retirement plans. They argue that ESG considerations can conflict with fiduciary duties, leading to potentially lower financial returns for retirement investments. This demand follows a recent court ruling in favor of a pilot against American Airlines, highlighting concerns about the performance of ESG investments compared to traditional ones. The officials highlighted the need for renewed emphasis on fiduciary responsibility and expressed worry over large asset managers prioritizing social or political agendas over financial returns.