Morgan Lewis Publishes Fall 2025 ESG Investing Update
In October, Morgan Lewis published a client alert titled “Fall 2025 ESG Investing Quarterly Update,” which highlighted several developments in the ESG regulatory and legislative space. At the federal-level, the US Department of Labor (DOL) formally committed to replacing the Biden-era rule allowing ERISA-regulated retirement plans to consider ESG factors. According to the DOL’s regulatory agenda, the new rule is expected to be finalized by May 2026. In addition, the Securities and Exchange Commission (SEC) formally withdrew its proposed rule on ESG disclosures for investment advisers and funds that would have required detailed reporting on ESG investment practices.
At the state-level, Republican and Democratic state officials sent a series of letters to the CEOs of several major asset managers. Republicans highlighted concerns with these firms embedding ESG considerations in their investment strategies, engagement, and proxy activities. Democratic letters requested asset management firms recommit to responsible governance practices and acknowledging climate-related risks as part of their fiduciary duty to shareholders. These competing frameworks will continue to pose issues for asset managers across state lines. Furthermore, state legislators in several states are introducing proposals aimed at addressing state-level ESG investing rules and state-level climate disclosure rules.
Click here to read the Morgan Lewis quarterly ESG investing for Fall 2025.