Liability from anti-ESG bills

Harvard Law School Forum on Corporate Governance published a new piece this week. The title says it all, The Liability Trap: Why the ALEC Anti-ESG Bills Create a Legal Quagmire for Fiduciaries Connected with Public Pensions. The highlights- the bills create a massive liability risk for any pension fiduciary or service provider; impose irreconcilable legal requirements; subject them to compliance with arbitrary and unworkable legal demands; and politicize state investments in a manner that empirical studies shows cause pecuniary harm. The article is a line by line take down of the bills.

“…two empirical studies have shown that participant/beneficiary trustees correlate with better fund returns, outperforming politicians and their appointees.”