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By: Barry Berke, Reid Feldman, Marissa Holob, Dani James, Jamie Kocis, Yasho Lahiri, Alexandre Omaggio, Andrew Otis - from US law firm Kramer Levin Naftalis & Frankel LLP

Part I: Key ESG regulatory developments

U.S.

There is a consensus among many investors and at the federal level that environmentally and socially conscious investments yield greater returns over the long run. However, there is an anti-"woke" backlash among some politicians and state legislators who view these concerns as political issues and ESG programs as the imposition of liberal priorities through nondemocratic means.

ERISA fiduciaries have unique considerations when determining whether, and to what extent, climate change and other ESG factors can be factored into their investment-related decisions. The Department of Labor's position has changed from time to time. It recently finalized regulations, Prudence and Loyalty in Selecting Plan Investments and Exercising Shareholder Rights, which replaces a 2020 regulation and allows ERISA fiduciaries to consider the economic impacts of climate change and other ESG factors when making investment-related decisions, subject to and in accordance with their fiduciary duties. This rule is currently being challenged in the courts.

When final, proposed SEC climate disclosure rules will require public filers to disclose climate risk, climate management and greenhouse gas emissions as well as audit and report on how that......................

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