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House to vote this week on Department of Labor’s ERISA/ESG rule (2023)
| Environmental, social, and corporate governance |
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| • What is ESG? • Enacted ESG legislation • Arguments for and against ESG • Opposition to ESG • Federal ESG rules • ESG legislation tracker • Economy and Society: Ballotpedia's weekly ESG newsletter |
Fox News reported on February 24 that the U.S. House will vote this week on a measure opposing the Labor Department’s rule allowing ESG consideration in ERISA-governed retirement funds:
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House Republicans will vote on legislation next week to kill the Biden administration’s controversial rule that allows private retirement plan fiduciaries to consider environment, social and governance (ESG) factors when making investment decisions for their clients. The Department of Labor’s controversial rule, which took effect in February, has been derided by Republicans and dozens of trade associations as an effort to impose a social agenda on the more than 140 million Americans whose retirement plans are governed by standards set by the federal government. For decades, those standards have said investment decisions must be guided by the goal of maximizing the return on those investments. However, the rule from Biden’s Labor Department said investment plan fiduciaries can consider companies that prioritize climate change and other social issues as they invest. House Republicans will use the Congressional Review Act next week to try and stop Biden’s ESG rule. That law lets Congress reject any federal rule if the House and Senate can pass a resolution that says Congress disapproves of it. Rep. Andy Barr, R-Ky., introduced a resolution to that effect in early February, and the House Rules Committee is scheduled to meet on Monday to set that resolution up for a vote on the House floor as early as Tuesday…. The Labor Department has defended its decision to allow retirement plan managers to consider investing in companies that are "committed to positive environmental, social and governance actions." While the Labor Department acknowledges those goals are not aimed at maximizing returns, the department also insists that the rule change would help plan fiduciaries "safeguard the savings of America's workers" by allowing ESG-based investment decisions. House passage of the bill disapproving of the ESG is all but assured in the GOP-led House, and while it is not clear Democrat leaders in the Senate will take it up, the bill is supported by at least half of the upper chamber. In early February, all 49 Republican senators and Sen. Joe Manchin, D-W.Va., proposed a Senate version of Barr’s legislation.[1] |
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See also
- Environmental, social, and corporate governance (ESG)
- Economy and Society: Ballotpedia's ESG newsletter
External links
Footnotes
- ↑ Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source.
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