Regulatory Uncertainty Continues as US ESG Rule Under Threat
ESG Practice Co-chair Jacob Hupart recently connected with Responsible Investor about the Department of Labor’s decision to reconsider, and potentially rescind, its ‘ESG rule’. The decision comes as the rule faces ongoing court challenges and amid broader regulatory rollbacks under the Trump administration.
Jacob described the decision as “wholly anticipated and expected” but called out that the main importance of the Biden rule was its signaling effect. “Although the Biden Administration’s Department of Labor rule was noteworthy in terms of the signal it conveyed to the marketplace, the practical impact was likely low,” he said. “Such a result – i.e., a symbolic but not practically important effect – would also result from any rescission of the rule.”
Source