In POLITICO, Josh Lichtenstein Shares Insight Into ESG Investing Backlash

Bills to prohibit state support of ESG investing are sputtering out in deep-red states like Mississippi, North Dakota and Montana. One common thread is the opposition of state-level banking groups bristling at efforts to restrict their activities. They are finding amenable audiences in statehouses.

Joshua Lichtenstein, partner and head of the ERISA and fiduciary benefits practice, told POLITICO that a potential consequence of bankers' moderating influence is that the bills that eventually emerge could end up being more legally defensible.

"If you are a state legislature and you're looking to pass some sort of anti-ESG or pro-boycott bill, listening to different constituencies and coming out with text that's a little bit more moderate might actually be more likely to actually be utilized or enforced," he said.