Trillions at Stake as 401(k)s Become ESG Political Footballs

The stage is set for President Joe Biden’s first veto, which would halt an effort to block a new policy on socially conscious 401(k) investing as retirement plans play a larger role in forging a greener Wall Street.

Enormous amounts of executive and legislative political power in Washington are being spent in the clash over a whether private-sector retirement plans can even consider environmental or social impacts in the investments they choose. Regulators are facing at least two federal lawsuits in Texas and Wisconsin challenging their authority to promulgate that kind of rule in the first place while states crack ...