ESG Act of 2025

HR 2358, the "ESG Act of 2025," primarily amends investment advice rules to prioritize financial (pecuniary) factors over non-financial considerations like environmental, social, or governance (ESG) factors. It requires investment advisers to base recommendations on financial impacts unless clients provide written consent to consider non-financial factors, and mandates detailed disclosures about the financial effects of such considerations over three years. The bill directly affects investment advisers, brokers, and dealers who provide advice to clients. Key provisions include new disclosure requirements for advisers using non-financial factors and a 12-month implementation timeline after enactment. (Note: The bill's title references "ESG," but its core policy restricts ESG considerations in investment advice, not promotes them.)