Jefferies Tells ESG Bosses to Keep Lawyers Close After Trump WinESG fund managers are being urged to keep their lawyers very close, after Donald Trump emerged as the winner of the US presidential race.
Trump’s return to the White House threatens to turbo-charge a years-long GOP assault on environmental, social and governance investing strategies. Investors intending to continue with ESG portfolios will need to ensure they understand the intricacies of the US legal system well, according to analysts at Jefferies Financial Group Inc.
“We’d encourage all ESG fund managers to have a lawyer on the team, or on speed-dial,” analysts led by Aniket Shah wrote in a note to clients on Wednesday. “Antitrust risk remains high for asset managers in ESG; there haven’t been any cases yet, thus there is no legal precedent. Further, legal risks regarding fiduciary duty will stay relevant as states enforce anti-ESG laws.”
News of Trump’s win has already battered stocks in green sectors, with shares of wind-energy companies among some of the biggest losers on Wednesday morning. But aside from the threat of bans and obstructive policies, the ESG industry now looks increasingly vulnerable to legal threats.
Key members of the GOP have long alleged that firms embracing ESG are ignoring their fiduciary duties, while Republican attorneys general have alleged that financial firms that incorporate ESG metrics may be guilty of collaborating against the fossil-fuel industry, and fanning inflation......................
https://www.msn.com/en-us/money/companies/jefferies-tells-esg-bosses-to-keep-lawyers-close-after-trump-win/ar-AA1tBTOD
