U.S. House passes two bills opposing ESG (2024)
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The House of Representatives passed two bills opposing ESG on Sept. 18 and Sept. 19. HR 5339 would require fiduciaries to make investment decisions based on financial factors. HR 4790 proposed limiting the Securities and Exchange Commission’s (SEC) climate risk disclosure requirements:
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On Wednesday, the House passed HR 5339, which would revert a retirement plan rule back to standards passed by the Trump administration, “requir[ing] fiduciaries of employer-sponsored retirement plans to make investment decisions based only on pecuniary factors.” However, it would also allow “nonpecuniary factors to be considered in certain situations, such as when selecting investment options for certain participant-directed retirement plans or if the fiduciary is unable to distinguish between investment alternatives on the basis of pecuniary factors alone,” according to the bill summary. That legislation also has other anti-ESG proposals folded into it, including one that could limit retirement plan fiduciaries from supporting certain issues in proxy votes. On Thursday, there was a hearing on a separate bill, HR 4790, the “Guiding Uniform and Responsible Disclosure Requirements and Information Limits Act of 2023.” The bill, which was passed on a mostly party-line vote, counters a recent SEC rule that requires large public companies to report climate risks and emissions data to investors. It would also establish a committee that would advise the SEC on regulatory priorities, public reporting and corporate governance, proxy voting, and other issues. The bill’s sponsor, Rep. Bill Huizenga, R-Mich., said that material information is already required to be disclosed to investors.[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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