Republican senators overturn new Labor Department rule allowing retirement plan trustees to consider climate change and other environmental, social and governance factors when choosing investments and exercising shareholder rights I have submitted a bill.
Arkansas Senator Tom Cotton submitted a joint resolution on Thursday, saying Congress “does not approve” the Labor Department’s rule and that “such rule will have no force or effect.”
“Retirement planning should prioritize investments that offer the highest returns, not ESG fraud,” Cotton said in a statement.
The resolution, which will not pass the Democratic-controlled Senate, further demonstrates Republican hostility to the Labor Department’s latest rulemaking.
On November 22, the ministry finalized its prudence and loyalty in choosing planned investments and exercising shareholder rights. The rule, first proposed in October 2021, overturns two of his rules promulgated under the Trump administration. A Trump-era rule issued in 2020 said retirement plan trustees cannot invest in “non-monetary” instruments that sacrifice investment returns or incur additional risk, according to the mandate. It outlines the process a trustee must follow when making a decision to issue a letter ballot.
The department’s Office of Employee Benefits Security Administration “believes that a final rule is necessary to reverse the chilling effect of the 2020 rule on investment selection and the integration of ESG factors into the investment process,” it said. Lisa M. Gomez, Assistant Secretary for Employee Benefits and Security, said. Press conference on November 22nd.
The new ESG Rules will take effect on January 30th.
