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This week in responsible investing, despite the best efforts of wealthy special interests to continue to push anti-ESG measures, those working in the financial industry continue to see the short and long-term benefits of ESG investment strategies. More below:

An anti-ESG lawsuit will be tried in the court of a conservative judge.

From UAF’s ICYMI: “This week, the trial began in Spence v. American Airlines, the first lawsuit against an employer-sponsored defined contribution plan, challenging the plan’s use of responsible investing criteria to make investing decisions. The ruling could serve as a template for extreme politicians to attack responsible investing in these types of plans.” 

The State Financial Officers Association is pushing anti-ESG measures at this year’s Republican National Convention, even though they’re unpopular with voters.

From UAF’s ICYMI: Conservatives seeking to undermine responsible investing are seemingly dead set on continuing to push their unpopular agenda, which is not catching on with the public. As the newsletter makes clear, “[SFOF spokesperson Derek] Kreifels declined to share details of who would be attending the group’s event. But it shows how efforts to oppose corporate environmental, social and governance principles are still alive within national GOP circles despite a lack of resonance with voters.”

The Supreme Court’s decision in the Chevron case will have a devastating impact on ESG.

From UAF’s statement: The U.S. Supreme Court today overturned 40 years of legal precedent by transferring power from the executive branch to Congress and the courts. In the case of Loper Bright Enterprises vs Raimondo, the six-seat Supreme Court majority overturned a 1984 ruling that gave regulatory agencies leeway to interpret laws that Congress had left vague.

A new study from Morningstar found that ESG funds are cheaper than conventional strategies.

From Portfolio Advisor: People often assume that ESG funds are more expensive than conventional portfolios due to the extra costs required for specialist data, research and expertise, but that is no longer the case, according to a new study from Morningstar.

It found that the ESG funds in six of the most popular Morningstar sectors charged an average fee of 0.83% (weighted to their size in the index), while their conventional peers had fees of 0.90%.

A former Republican congressman made the conservative case for responsible investing.

From Investment News: “The environment does not belong or should not belong to either party,” said Curbelo, who represented Florida’s 26th district until 2019. “We need to treat this issue with that kind of respect and elevate it in a way that actually releases it from being part of either ideology or either party. This is something that everyone should be for.”

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