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ESG Mandates For Banks May Bring Compliance Challenges

Members Keith Kollmeyer and Jacob Hupart and Associate Ellen Shapiro co-authored an article published by Law360 analyzing the implications of ESG mandates for banks. The authors wrote, "Conflicting laws across state lines have created a fractured environment that is not easy to navigate, with some states embracing the use of environmental, social and governance factors for investments of public funds and other states banning the use of ESG factors." They continued, "Yet, there is another domain — which has received little attention — where a new flashpoint in the ESG debate is emerging: the practices and policies of banks that simply hold state or local funds as depository institutions."