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ESG — US State-Level Developments for Private Capital and Financial Institutions

June 21, 2024
Private capital providers, investors, asset managers, and financial institutions will likely continue to face a fragmented regulatory landscape on ESG matters.

Various US states have taken and continue to take action on ESG investing and other matters, with new variants emerging regularly. Some of the state bills, laws, and actions overlap thematically, and indeed some are based on common model bills. However, there are sufficient differences among them — and the politics and politicians underlying them — that make it prudent to review each state’s profile separately. This activity has created a fragmented regulatory landscape for private capital providers, investors, asset managers, and financial institutions in particular, and one that promises to remain so (or even become more fragmented) in the near- to mid-term.

This resource provides a practical summary of selected key developments among many of the largest states by investment fund size. It aims to serve as an initial resource for private capital and related financial entities in understanding the major US state-level policies that may impact them.

These actions have generally fallen along one of several core themes or theories; however, the specific parameters and implementation have not been uniform from state to state. As such, it is important to investigate — on a law-by-law and entity-by-entity basis — how they may apply to particular entities and investment vehicles, as well as how to respond to the varying requirements in the most efficient and effective manner.

Latham & Watkins is actively monitoring this space; if you have any questions, please contact one of the parties listed below or the Latham lawyer with whom you normally consult.

Updated as of May 30, 2024

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    *Not admitted to practice in Illinois. Admitted in Texas.