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ARTICLE · 30 JULY 2024

Relying On Loper, Fifth Circuit Sends Chevron-Based Decision Back To District Court, Calling ESG Rule Into Question

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On July 18, the U.S. Court of Appeals for the Fifth Circuit vacated a decision by the U.S. District Court for the Northern District of Texas that upheld the U.S. Department of Labor's 2022 environmental, social and governance rule.

United StatesEnvironment
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On July 18, the U.S. Court of Appeals for the Fifth Circuit ("Fifth Circuit") vacated a decision by the U.S. District Court for the Northern District of Texas ("District Court") that upheld the U.S. Department of Labor's ("DOL") 2022 environmental, social and governance ("ESG") rule ("ESG Rule"). The ESG Rule, issued pursuant to President Biden's Executive Order, "Protecting Public Health and the Environment and Restoring Science to Tackle the Climate Crisis," allows Employee Retirement Income Security Act ("ERISA") fiduciaries to give weight to "the economic effects of climate change and other environmental, social, or governance factors" when there are two or more financially equal investment options.

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