The U.S. House of Representatives has passed a bill blocking President Biden's administration from allowing retirement plans to consider ESG issues in their investment decisions, according to multiple news sources.
The Republican-led House passed the measure in a 216-204 vote Feb. 28. A companion measure will move to the Senate which could vote as early as March 1. If approved, the resolution would then go to the desk of President Biden, who has said he would veto the measure.
In November 2022, the U.S. Department of Labor announced a rule that allows plan fiduciaries to consider climate change and other ESG factors when they select retirement investments and exercise shareholder rights, such as proxy voting.
The rule, known as “Prudence and Loyalty in Selecting Plan Investments and Exercising Shareholder Rights,” follows Executive Order 14030, which was signed by President Biden on May 20, 2021. The order directs the federal government to identify and asses