Biden Uses First Veto to Defend Rule on ESG Investing

President Joe Biden vetoed a Republican proposal that would prevent pension fund managers from taking climate change into account when making investment decisions. The proposed legislation aimed to defend a rule by the Labor Department that made it easier for fund managers to consider environmental, social, and corporate governance (ESG) issues when making investments and shareholder rights decisions. On March 1, the bill was approved in Congress with the support of two Democratic senators who voted alongside Republicans. The Republicans’ argument is that allowing plan managers to pursue liberal causes would negatively impact financial performance, while Democrats accused them of meddling in private investment decisions.



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