House approves second package against ESG investing

The House of Representatives approved H.R. 4790, the Prioritizing Economic Growth Over Woke Policies Act, a legislative package aimed at protecting companies from what Republicans describe as woke investing. This bill, along with others from the Financial Services Committee Republicans, seeks to limit the influence of environmental, social, and governance (ESG) factors in investment decisions and shareholder votes. House Republicans have expressed concerns that ESG is being used to push left-leaning ideologies at the expense of economic growth. In a related development, the House passed H.R. 5339 on Wednesday, which prohibits retirement fund managers from incorporating ESG considerations into their investment strategies. This move further underscores the Republican party s stance on curbing the impact of ESG factors on investment decisions. These legislative efforts reflect the ongoing debate between Republicans and Democrats over the role of ESG factors in investment and corporate governance. While Democrats generally support ESG principles as a means to promote sustainability and social responsibility, Republicans view them as a potential threat to economic growth and free-market principles. The passage of these bills in the House highlights the partisan divide on this issue and the potential implications for future investment and corporate policies.

Source: eenews.net
Published on 2024-09-20