By Alliance President Terry Gips
Kudos to President Biden for using his first veto to stop the proposed Republican-led legislation blocking the use of ESG Principles (Environmental, Social and Governance) by business and investment managers. ESG “had been a widely accepted norm in financial circles for almost 20 years until Republicans recently started assailing it as ‘woke capitalism’ that injected Democratic and liberal values into financial decisions,” the NY Times pointed out. “More than $18 trillion is held in investment funds that follow E.S.G. principles.”
As the President said, “This bill would risk your retirement savings by making it illegal to consider risk factors MAGA House Republicans don’t like. Your plan manager should be able to protect your hard-earned savings — whether Rep. Marjorie Taylor Greene likes it or not.” The Senate passed the ESG resolution 50 to 46 after two Democrats, Sen. Jon Tester of MT and Joe Manchin of WV, joined every Republican.
The NY Times notes: “Officials in Republican-led states have argued that the rule will lead to disinvestment in fossil fuel companies that provide tax revenue and jobs in their states. On Monday, Mr. Manchin, who is up for re-election in a coal state next year, criticized the president’s decision to veto the measure.” Manchin said, “This administration continues to prioritize their radical policy agenda over the economic, energy and national security needs of our country, and it is absolutely infuriating,”
And Speaker Kevin McCarthy said Mr. Biden had sided with “woke Wall Street” over American workers. “Now — despite a bipartisan vote to block his ESG agenda — it’s clear Biden wants Wall Street to use your retirement savings to fund his far-left political causes.”
Make no mistake about it, their anti-ESG policies oppose our addressing climate change, LGBTQ rights and the creation of a healthy, prosperous future of sustainability. Thank you President Biden for blocking their efforts and supporting ESG.