WASHINGTONSubcommittee Chair on Economic Growth, Energy Policy, and Regulatory Affairs Pat Fallon (R-Texas) and Health Care and Financial Services Subcommittee Chair Lisa McClain (R-Mich.) delivered the opening remarks at today’s joint hearing entitled ESG Part II: The Cascading Impacts of ESG Compliance. Subcommittee Chairs Fallon and McClain warned that Democrats are forcing their wake-up political agenda through environmental, social and governance (ESG) policies while ignoring real US economic, energy and national security interests. Progressive ESG policies jeopardize returns on investments for retirees and shareholders at a time when Americans are already struggling to keep up with their retirement plans in President Biden’s damaged economy.
Below are key excerpts from remarks by Subcommittee Chair on Economic Growth, Energy Policy and Regulatory Affairs Pat Fallons (R-Texas) prepared for the delivery.
Millions of Americans across the country are confident that their investments will be used to turn a profit and hopefully one they can live on comfortably in retirement. Because what we’re really looking for, what we’re investing in over the long term, is financial security. But these days, isn’t it crazy for many Americans to wonder if I’ll be able to afford my retirement?
This administration drove inflation through the roof and pushed the economy to the brink of a severe recession. Now, due to the Democrats’ ESG push, asset managers are prioritizing ESG goals over profit and risking Americans’ hard-earned money.
With ESG investing, companies are now tasked with factoring in not only their own carbon footprint, but also the footprint of their contractors and suppliers, as well as the race and gender of their board members, rather than merit and performance of those same board members.
To secure capital, the lifeblood of any business, companies large and small must now hire teams of lawyers and compliance consultants to sift through internal data and estimate exactly what their greenhouse gas emissions might be or how many points they scored with activist organizations to tick the right boxes on an ever-changing list of social norms.
ESG is being used in an attempt to rewrite the fabric of America with awakened policies that deliver nothing but higher prices, cultural oppression, not to mention risky return on investment for retirees and regular Americans.
Below are key excerpts from Health Care and Financial Services Subcommittee Chair Lisa McClains (R-Mich.) remarks prepared for delivery.
The limitless ability of money managers to pursue ESG commitments without the knowledge of their clients is doing the opposite. It is not their job to pursue political agendas. Their job is to invest their clients’ money by putting their clients first and focusing on rates of return. Indeed, it is their fiduciary duty to do so. However, we are seeing more and more cases of awakened societies importing European values over American ones. And they don’t even tell their clients about the financial risks associated with adopting these values.
Even so-called non-ESG neutral investment funds are increasingly voting in favor of ESG resolutions. In some cases, more than ESG funds. And they don’t tell their customers. Why is there no transparency? What are they hiding?
I’m all for the freedom to invest your money in causes you believe in. But that’s not what’s happening here. Managers are putting YOUR money into causes they believe in. And we are seeing real consequences for American retirements.
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