U.S. states challenge Biden rule on socially conscious investing

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U.S. states challenge Biden rule on socially conscious investing
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A coalition of 25 U.S. 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 (ESG) factors such as climate change and racial justice when selecting investments.

will lead many retirement plans to focus on a social agenda rather than long-term financial stability for investors.that were adopted by the Trump administration.

And, the states said, it violates the U.S. law that regulates employee benefit plans by failing to protect retirement assets. Texas Attorney General Ken Paxton, a Republican, in a statement called the rule "insulting and illegal."

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