In recent months, Florida and several other states enacted or proposed “anti-ESG” laws or policies, including those that are intended to restrict state funds from considering ESG factors in their investment decisions and/or to deter companies from “boycotting” on the basis of ESG factors. On the other hand, states such as California and New York have enacted or proposed laws or policies in recent months that require consideration of ESG factors in state fund investment decisions. Together with the recent open letter from 23 state attorneys general demanding information from insurance companies on their net-zero commitments, these recent state-level legal developments further amplify the polarization of the ESG-related legal landscape in the U.S.
Legislative and Regulatory Updates
States continue to enact laws focused on ESG. On May 2, Florida enacted a wide-ranging “anti-ESG” law, which will become effective on July 1. Among other requirements, the law requires that all investment decisions regarding Florida state money be based “solely on pecuniary factors”, and prohibits state and local governments from issuing ESG bonds or considering ESG in their procurement and contracting process.
