Beth Boland Comments on Push in Some States to Limit Use of ESG Factors in Investing

Foley & Lardner LLP partner Beth Boland is quoted in the Reuters article, “Analysis: New anti-ESG rule in Missouri offers US Republicans another path away from ‘wokeness,’” commenting on the push by lawmakers in some states to limit the consideration of environmental, social and governance (ESG) factors by business and investors.

Missouri’s Secretary of State recently issued a rule that could become a template for other states on this path which requires broker-dealers to obtain consent from customers in advance of purchasing or selling an investment product based on nonfinancial objectives. The rule was issued after state legislators failed to enact legislation to that effect.

“In the absence of legislative action, which can be hard to achieve, you’ll see a migration to action via executive or administrative orders and attorney general opinions,” Boland explained.