•  
  •  
 

Abstract

In Spence v. American Airlines, Inc., the U.S. District Court for the Northern District of Texas found that American Airlines breached its fiduciary duties due to BlackRock’s ESG investing practices. Contrary to some reports suggesting that the ruling prohibits ESG investing under ERISA, a closer look at the ruling shows that the court only targeted American Airlines’ failure to manage conflicts of interest appropriately, rather than the legality of ESG investing itself. In light of the intensifying ESG backlash in the United States, this Article cautions against further restrictive measures on ESG investing. Such measures would exacerbate the widening transatlantic divide on ESG regulation, complicating regulatory compliance for U.S. asset managers operating in global markets. Even as U.S. asset managers retreat from ESG, many global asset owners remain focused on climate risks and long-term values. Restricting ESG investing could harm the competitiveness of U.S. asset managers. In light of the risks of climate change and the global focus on ESG, permitting the consideration of ESG factors for risk-return purposes under ERISA is not only prudent for the U.S. asset management industry—but more importantly, it is loyal to the planet.

Download

Included in

Accounting Law Commons, Administrative Law Commons, Admiralty Commons, Agency Commons, Agriculture Law Commons, Air and Space Law Commons, Animal Law Commons, Antitrust and Trade Regulation Commons, Banking and Finance Law Commons, Bankruptcy Law Commons, Business Organizations Law Commons, Civil Law Commons, Civil Procedure Commons, Civil Rights and Discrimination Commons, Commercial Law Commons, Common Law Commons, Communications Law Commons, Comparative and Foreign Law Commons, Computer Law Commons, Conflict of Laws Commons, Constitutional Law Commons, Construction Law Commons, Consumer Protection Law Commons, Contracts Commons, Courts Commons, Criminal Law Commons, Criminal Procedure Commons, Cultural Heritage Law Commons, Disability Law Commons, Disaster Law Commons, Dispute Resolution and Arbitration Commons, Education Law Commons, Elder Law Commons, Election Law Commons, Energy and Utilities Law Commons, Entertainment, Arts, and Sports Law Commons, Environmental Law Commons, Estates and Trusts Commons, European Law Commons, Evidence Commons, Family Law Commons, First Amendment Commons, Food and Drug Law Commons, Fourteenth Amendment Commons, Fourth Amendment Commons, Gaming Law Commons, Government Contracts Commons, Health Law and Policy Commons, Housing Law Commons, Human Rights Law Commons, Immigration Law Commons, Indigenous, Indian, and Aboriginal Law Commons, Insurance Law Commons, Intellectual Property Law Commons, International Humanitarian Law Commons, International Law Commons, International Trade Law Commons, Internet Law Commons, Judges Commons, Jurisdiction Commons, Jurisprudence Commons, Juvenile Law Commons, Labor and Employment Law Commons, Land Use Law Commons, Law and Economics Commons, Law and Gender Commons, Law and Philosophy Commons, Law and Politics Commons, Law and Psychology Commons, Law and Race Commons, Law and Society Commons, Law Enforcement and Corrections Commons, Law of the Sea Commons, Legal Biography Commons, Legal Education Commons, Legal Ethics and Professional Responsibility Commons, Legal History Commons, Legal Profession Commons, Legal Remedies Commons, Legal Writing and Research Commons, Legislation Commons, Litigation Commons, Marketing Law Commons, Medical Jurisprudence Commons, Military, War, and Peace Commons, National Security Law Commons, Natural Law Commons, Natural Resources Law Commons, Nonprofit Organizations Law Commons, Oil, Gas, and Mineral Law Commons, Organizations Law Commons, Other Law Commons, President/Executive Department Commons, Privacy Law Commons, Property Law and Real Estate Commons, Public Law and Legal Theory Commons, Religion Law Commons, Retirement Security Law Commons, Rule of Law Commons, Science and Technology Law Commons, Second Amendment Commons, Secured Transactions Commons, Securities Law Commons, Sexuality and the Law Commons, Social Welfare Law Commons, State and Local Government Law Commons, Supreme Court of the United States Commons, Taxation-Federal Commons, Taxation-Federal Estate and Gift Commons, Taxation-State and Local Commons, Taxation-Transnational Commons, Tax Law Commons, Torts Commons, Transnational Law Commons, Transportation Law Commons, Water Law Commons, Workers' Compensation Law Commons

Share

COinS