The Interfaith Center on Corporate Responsibility (ICCR) has condemned the U.S. Senate’s vote to repeal a Department of Labor (DoL) ruling permitting ESG factors to be considered as part of the fiduciary duties of employee retirement funds.
In a March 1 press release, ICCR expressed its “strong disappointment” with the Senate’s decision to pass a Congressional Review Act (CRA) resolution seeking to repeal the DoL’s ESG rule.
The DoL rule stated that the evaluation of ESG factors in investment selection is consistent with fiduciary duty and acknowledged that ESG factors are no different from other material risk-return factors.
The CRA was introduced by a group of 27 Republican lawmakers last month who argued that the rule is “unlawful,” “contradicts the existing Employee Retirement Income Security Act” (ERISA), and “permits asset managers to place retirement savings at risk by using them to advance political agendas.”
On March 1, the U.S. House of Representatives voted 216 to 204 in favor of adopting the CRA resolution.
“This misguided CRA was introduced by Republican lawmakers with ties to the oil and gas sector who are weaponizing the rule as part of a broader campaign to vilify ESG investing as woke, a dog whistle for right-wing groups with a regressive social and environmental agenda,” said ICCR CEO Josh Zinner in a press release.
“Members of congress are playing politics with the life-saving of hard-working Americans,” he added. “This irresponsible CRA could have disastrous long-term consequences for pensioners and harm our economy. We fully expect President Biden will veto this resolution.”