U.S. Congress votes to block ESG investing, Biden veto expected

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U.S. Congress votes to block ESG investing, Biden veto expected
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A Republican drive to prevent pension fund managers from considering factors like climate change in their investment decisions gained momentum on Wednesday, as a second U.S. Senate Democrat said he would support the measure in an afternoon vote.

Republicans claim the rule, which covers plans that collectively invest $12 trillion on behalf of 150 million Americans, would politicize investing by allowing plan managers to pursue liberal causes, which they say would hurt performance.

The Labor Department regulation prohibits plan managers from subordinating financial interests to other objectives, according to aanalysis, which found it makes largely cosmetic changes to a more restrictive rule set in place under former President Donald Trump. "This just simply says that the primary criterion has to be the financial return on investment," said Republican Senator Mike Braun, who sponsored the bill.

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