WASHINGTON – President Biden issued his first veto of his presidency on Monday, rejecting a bill that would have overturned a Labor Department rule that would have allowed retirement plan managers to consider environmental, social and governance (ESG) issues in their investment decisions.
“There is extensive evidence that environmental, social and administrative factors can have a material impact on markets, industries and businesses,” Mr Biden said in a statement announcing the veto. “But the Republican-led bill would force retirement managers to ignore these relevant risk factors, flouting free market principles and threatening the life savings of working families and retirees. In fact, the bill would prevent plan fiduciaries from taking account factors into account.” Physical risks of change and weak corporate governance, which can affect investment returns.”
Republicans have sharply criticized the rule, saying ESG investment practices that take into account issues like climate change unfairly penalize industries like the oil and gas sector.
The president said retirement fund managers “should be able to consider any factor that maximizes financial returns for retirees across the country.”
The resolution was introduced by Rep. Andy Barr, a Republican in the GOP-led House, and passed in late February, with one Democrat joining Republicans in support. The Senate soon overturned the rule by a vote of 50 to 46, Democratic sens. Joe Manchin and Jon Tester joined in supporting Republicans. House GOP leaders want to hold a vote to override the president’s veto, which requires the support of two-thirds of both chambers.
Mr. Biden There is still more to say Whether he will sign a measure to release information about the origins of the Covid-19 pandemic. Both the House and Senate passed the measure unanimously.
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Catherine Watson
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