House Republicans pass anti - ESG package during anti - woke week

The House recently passed a series of bills aimed at restricting the consideration of environmental, social, and governance (ESG) factors in retirement investment decisions and limiting the Securities and Exchange Commission s (SEC) climate-related disclosure rules. These bills, part of a Republican initiative dubbed an anti-woke week, are unlikely to advance in the Democrat-led Senate. However, they provide insight into how Republicans might address the issue if they gain power in the upcoming November elections. President Joe Biden criticized the legislation, stating that it would reduce savings and retirement security for Americans by artificially limiting fiduciaries ability to consider material information in making sound investments. The Republican-led bills have also faced scrutiny in state legislatures, where similar laws have been criticized for their potential adverse financial and economic impacts. The Protecting Americans Investments from Woke Policies Act (H.R. 5339) seeks to overturn a Biden administration Department of Labor rule that permits retirement plan managers to consider ESG factors in investment decisions. The bill would revert the rule to one passed under former President Donald Trump, requiring investment managers to make decisions solely based on pecuniary factors. The Prioritizing Economic Growth Over Woke Policies Act (H.R. 4790) aims to overturn the SEC rule that mandates large public companies to report climate risks and emissions information. The bill also grants companies more power to block ESG-related proposals from shareholders. The End Woke Higher Education Act (H.R. 3724) would require colleges and universities to adhere to First Amendment principles to receive federal funds. Despite the Republican push, Democrats have attempted to insert amendments to highlight the SEC s authority to require disclosures from private companies. However, these amendments were rejected by the Republicans. In summary, the Republican-led bills aim to limit the consideration of ESG factors in retirement investment decisions and restrict climate-related disclosure rules. Critics,

Source: bondbuyer.com
Published on 2024-09-23