Ten State Attorneys General Launch Inquiry Into Major Financial Institutions' DEI & ESG Programs

Takeaways

• A letter from 10 state Attorneys General to 6 major financial services companies signals an increase in state-level scrutiny of DEI and ESG practices.
• The legal requirements are related to discrimination, but DEI practices are more likely to be investigated and subject to enforcement action.
• Although the letter was sent only to six major companies, all financial services companies are on notice of the increased scrutiny.
• An assessment of DEI and ESG practices can help financial services institutions identify and take steps to mitigate risks and ensure legal compliance.

The Attorneys General of ten states have issued a letter challenging the diversity, equity, and inclusion (DEI) and environmental, social, and governance (ESG) programs at six major financial institutions in the United States. The letter, which was later made public, asserts the position of the Attorneys General that these institutions "appear to have embraced race-