Sen. Shelley Moore Capito (R-WV) talks to reporters during a news conference following the weekly Senate Republican policy luncheon at the U.S. Capitol on February 28, 2023 in Washington, DC.
Chip Somodevilla | Getty Images
WASHINGTON — The Senate on Wednesday voted to overturn a Labor Department rule that permits fiduciary retirement fund managers to consider climate change and other factors when making investments on behalf of pension plan participants.
The final vote in the Senate was 50-46, with two Democratic senators crossing party lines to support the repeal bill: West Virginia Sen. Joe Manchin and Montana Sen. Jon Tester. Both are up for reelection next year in conservative-leaning states.
President Joe Biden said Monday that he will veto the Senate bill if it comes to his desk — the first veto of his presidency.
The House version of this bill passed on Tuesday with the support of every Republican and one Democrat, after which it advanced surprisingly quickly to the Senate.
Buoyed by wins in November’s midterm elections, Republicans have vowed to use their new clout in Washington to take aim at “woke” capitalism — starting with an all-out assault on environmental, social, and corporate governance (ESG) investing policies. ESG funds are designed to attract socially conscious investors with stock picks that promote renewable energy, inclusive policies, or good corporate governance.
Speaking on the Senate floor Wednesday, Majority Leader Chuck Schumer, D-NY, defended the Labor Department rule, which went into effect in November of last year.
“This isn’t about ideological preference — it’s about looking at the biggest picture possible for investors to minimize risk and maximize returns,” said Schumer. “Why shouldn’t you look at the risks posed by increasingly volatile climate incidents?”
Democrats also noted that the Labor Department rule was voluntary, so it didn’t require fund managers to actually do anything.
Instead, it released them from the previous…
Read the full article here
