Four Republican representatives introduced a bill in the House to combat a proposed rule by the Department of Labor that explicitly allows retirement plan fiduciaries to consider environmental, social and governance factors, reflecting a recent movement among GOP officials to promote anti-ESG policies.
Reps. Greg Murphy, R-N.C.; Carol Miller, R-W.Va.; David Schweikert, R-Ariz.; and Lloyd Smucker, R-Pa., unveiled the legislation on Wednesday in response to the DOL proposal, introduced in October 2021, that allows ERISA fiduciaries to "consider climate change and other ESG factors in the assessment of investment risks and returns."
"The Biden administration's proposed changes to ERISA abandon fiduciary responsibility by allowing 'woke' ESG factors to dictate investment returns — putting Americans' retirement savings at risk," Mr. Murphy said in a press release Wednesday. "Our commonsense legislation would impose strict enforcement measures to ensure that 'woke' Biden policies do not hinder Americans' retirement savings."
The proposed legislation, named the Safeguarding Investment Options for Retirement Act, builds upon a similar House bill introduced in March by Reps. Andy Barr, R-Ky., and Rick Allen, R-Ga.
Florida Gov. Ron DeSantis is one of several Republicans on the state level who has endorsed anti-ESG policies. In August, he passed a resolution, along with the two other trustees of the Florida State Board of Administration, to prohibit considering ESG factors when making investment decisions for the $182 billion Florida Retirement System.
On Aug. 4, 19 Republican attorneys general sent a letter to BlackRock, the world's largest money manager, criticizing their ESG-related initiatives. One participant was West Virginia Attorney General Patrick Morrisey, who is also in support of the new House bill.
"This bill would put in critical guard rails to prevent far left schemes from robbing people of the full returns on their investments that they deserve," Mr. Morrisey said in the press release. "As Attorney General of West Virginia, I am standing firm with my colleagues to fight back against the Biden administration's ESG policies that are waging an all-out war against traditional American energy and values."
