Posts tagged ESG
REPORT: Big Labor’s Push to Force Investment Managers to Ignore Fiduciary Duty and Promote Unions
March 21, 2024 // Click here to download the report. REPORT: “The Next President Will Face an Emerging ESG Threat; Big Labor’s Push to Force Investment Managers and Publicly Traded Companies to Ignore Fiduciary Duty and Promote Unions” by Sam Adolphsen and F. Vincent Vernuccio President Biden…
The rise and fall of ESG investing
November 9, 2023 // Ideologically aligned investments are risky. Fink and others now seem to understand that. There’s a role for ESG investing if people want it, with the risks and realities clearly explained up front. As the conversation moves forward on rulemaking, regulation and what the law should be, the fiduciary responsibility that money managers have to their clients to produce the greatest possible return on investment must remain the paramount consideration.
Biden ESG rule survives challenge from 25 red states
September 24, 2023 // Kacsmaryk’s 14-page ruling rejects the red states’ argument that the environmental and sustainable governance (ESG) rule violates the Administrative Procedure Act and the Employment Retirement Income Security Act, which regulates retirement plans. He wrote that the Biden administration rule still complies with those statutes, because it prioritizes financial considerations over environmental ones and thus has no “overarching regulatory bias in favor of ESG strategies.” “[W]hile the Court is not unsympathetic to Plaintiffs’ concerns over ESG investing trends, it need not condone ESG investing generally or ultimately agree with the Rule to reach this conclusion,” he wrote.
ESG Is a Front for Labor
July 24, 2023 // House Republicans have declared July “ESG month,” planning hearings and bills to push back against politicized environmental, social, and governance investing. Yet so far, lawmakers have almost exclusively focused on environmental issues. Republicans should also pay attention to the “S” in ESG, which labor unions are using to advance their agenda at the expense of workers, their own members, and even taxpayers — a problem that President Biden has significantly worsened. The 2023 proxy season, which started in January and ended in June, shows the union campaign in action. Union funds and their allies, such as the New York City Employees’ Retirement System and like-minded investment managers, introduced many ESG-focused shareholder proposals designed to accelerate unionization. Consider Apple, which was targeted by five New York City pension funds, multiple investment managers, and the SEIU Master Trust Pension Plan, among others.
Labor secretary nominee defends ESG rule in tense House testimony
June 9, 2023 // Mr. Allen introduced a bill last year with Rep. Andy Barr, R-Ky., similar in scope to a rule finalized late in the Trump administration that said retirement plan fiduciaries could not invest in "non-pecuniary" vehicles that sacrifice investment returns or take on additional risk. Mr. Allen said he's working on reintroducing the bill during this Congress. Under the Biden administration, the Labor Department rescinded the Trump-era rule. On Tuesday, Ali Khawar, principal deputy assistant secretary of the Labor Department's Employee Benefits Security Administration, said the rule is neutral and doesn't require consideration of ESG factors when making an investment decision.
A Mandate for Labor Error: Big Labor Radicalizes
May 25, 2023 // s for claims by some conservatives that embracing unions will drive electoral success, these notions arise from populist factions’ overinterpretation of the 2016 election results and under-interpretation of elections since then. Many note that in his 2016 campaign, Donald Trump’s efforts in the upper Midwest states of Wisconsin, Michigan, and Pennsylvania were aided by his moderate stances on economic issues relative to the positions of prior Republican candidates like Mitt Romney. And this is generally true—but not on labor-relations issues.
House attempt to override Biden comes up short Labor Department regulation regarding ESG investments will stand
March 24, 2023 // "Thanks to Democrats, workers can be placed into ESG investment vehicles by default, and if a fiduciary finds that two investments are equal, the fiduciary is allowed to use collateral ESG factors to break the tie, without justifying or documenting that decision,” Education and the Workforce Chairwoman Virginia Foxx, a North Carolina Republican, said during the floor debate on the veto message.
Biden’s first veto backs pension investments in ESG
March 22, 2023 // The House is set to vote Thursday on overriding the veto, which requires a two-thirds vote, or support from 290 members. That outcome is unlikely after the resolution of disapproval first passed the House 216-204 last month. The Labor Department regulation was finalized last year and sought to strike a compromise between financial services companies that wanted clear rules and plan sponsors that did not want to be required to consider environmental, social and governance factors. It reversed a Trump administration policy that made changes to how a 1974 law, known as the Employee Retirement Income Security Act, is implemented.
Biden set for first veto on Senate bill opposing climate-friendly investing
March 2, 2023 // President Biden is expected to issue the first veto of his presidency after the Senate passed a bill Wednesday that would revoke a Labor Department rule allowing the managers of the agency’s vast retirement funds to use climate-oriented and social criteria when making investments. The Senate passed the measure after Sens. Jon Tester (D-Mont.) and Joe Manchin III (D-W.Va.) crossed party lines and joined the Republicans, providing the key pieces of the 50-46 majority needed. Both senators are up for reelection next year in heavily Republican states. Four senators abstained. The House passed the bill on Tuesday. The measure takes aim at big asset managers who often use criteria that they believe are crucial for building a portfolio that can withstand changes, especially climate changes, over the coming years. These criteria are known as ESG — environmental, social and governance — and have become sensitive political and cultural touchstones, with critics calling them evidence of “woke” financial institutions.