With Repeal of ESG Rule, Congress Increases Risk to Retirement for Millions
WASHINGTON, D.C. – The U.S. Senate today followed the lead of the U.S. House of Representatives in voting to repeal a Department of Labor rule intended to provide retirement managers the freedom to account for financial risks from climate change and poor corporate governance. President Joe Biden is expected to veto the resolution.
Rachel Curley, democracy advocate with Public Citizen, issued the following statement:
“The DOL rule simply restores the long-time status quo of allowing retirement plans to consider important financial factors like how a company is run, whether its practices match its values and the risks it faces from global disruptions like climate change. Repealing a rule protecting retirement savings for millions of workers is irresponsible and puts personal political ambitions above long-term financial responsibility. Leaving investors in the dark is a disservice to our entire economy. Anyone claiming to care about workers voting to overturn such a reasonable rule is clearly playing politics with workers’ retirement savings in a way that flies in the face of common sense.”