This article was published in October 2022 by Ropes&Gray
Ropes & Gray is actively tracking the rapidly evolving state approaches to regulating ESG investments by state retirement systems. Since last circulating our multi-state survey in August, we have seen a flurry of activity, including state treasury divestitures from a major asset manager and coalitions forming between pro- and anti-ESG states. In addition to both proposed and enacted legislation, we are also seeing state treasurers updating investment policy statements to expressly exclude consideration of ESG factors when making investment decisions. These actions show that states may act in the ESG space even without actually passing new laws.