ESG & Investing
Texas Ruling Opens Door to New Era of Scrutiny: ESG Investing
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The 401(k) ruling against American Airlines Group Inc. for allegedly pursuing a “green” activism agenda is almost certain to add to the scrutiny facing ESG investment strategies.
A US District Court judge in Texas said last week that the airline broke federal law by filling its 401(k) plan with funds from investment companies that pursue ESG goals. The decision is one of the first major legal victories for opponents of environmental, social and governance investing.