ESG Regulation in the United States

While the United States is off to a slower start than Europe when it comes to ESG regulation, the Biden Administration is working to make up for lost time.  Although the U.S. Supreme Court has issued a June 2022 decision limiting the Environmental Protection Agency’s power to broadly regulate carbon emissions, the executive branch still has a number of tools at its disposal to promote sustainable development.  Since 2021, the Biden Administration has worked to establish ESG as a crucial part of its regulatory agenda.  These efforts have included both President Biden’s Executive Orders and rule making and other actions by the Securities and Exchange Commission (SEC) and the Department of Labor (DOL). Additionally, in August 2022, the President signed the Inflation Reduction Act, which aims to cut emissions 40% from 2005 levels and earmarks $370 billion for clean energy, electric vehicles, and carbon capture and storage.

More information on each of these efforts can be found below.