Attorney General Mark Brnovich Joins Coalition Fighting Back Against Another ESG Rule

PHOENIX – Arizona Attorney General Mark Brnovich is joining a 21-state coalition in filing formal comments regarding a U.S. Securities and Exchange Commission (SEC) proposed rule that would add onerous requirements for investment funds that consider Environmental, Social and Governance (ESG) factors in their investment decisions.

The proposed rule, Enhanced Disclosures by Certain Investment Advisers and Investment Companies about Environmental, Social and Governance Investment Practices, is another attempt by the SEC to transform itself from the “federal regulator of securities into a regulator of social ills,” according to the coalition’s comments letter.

In November, General Brnovich announced he was looking into ESG investing practices by major firms, including their membership in the investor-led initiative, Climate Action 100+. And then earlier this month, General Brnovich led a coalition that called out the ESG practices of a prominent investment management firm. 

Arizona is joined in this letter by West Virginia, Alabama, Alaska, Arkansas, Georgia, Idaho, Indiana, Kansas, Kentucky, Louisiana, Mississippi, Missouri, Montana, Nebraska, Oklahoma, South Carolina, Texas, Utah, Virginia, and Wyoming.

Copy of the letter here