(USNewsMag.com) – Joe Manchin (D-WV), chairman of the Senate Committee on Energy and Natural Resources, has made it seem like companies and financial institutions that are embracing the idea of environment, social culture, and governance criteria (ESG) in their investments are ignoring the dangers associated with international politics.
Earlier in February 2023, when Manchin sided with Republicans regarding the resolution, he said that it was reckless for Biden’s administration to risk the retirement funds of over 150 million citizens for clearly political reasons in a period of economic unpredictability, record amounts of inflation, and rising energy costs.
While Manchin is seeking another term in a state where there is a growing backlash against ESG policies, he is increasingly taking a stance against them. He said that academic institutions and financial corporations were ignoring geopolitical dangers in favor of ESG factors. Without taking the risks into account, they are not being practical.
This follows the West Virginia Democrat’s recent vote for a rejection resolution to overturn Biden’s January 30 implementation of a Labor Department regulation requiring ESG investments. The Labor Department, under Biden’s leadership, has effectively politicized people’s 401(k)s by announcing a plan that would enable retirement plan administrators to include ESG concerns in investment choices, thereby reversing a regulation put in place by the Trump administration.
Nothing can be done to prevent a disapproval resolution from being debated on the floor if it is put to a vote and passes by a simple majority. As a result, the Republicans need just one more vote if Manchin switches to voting with them. With the following Senators being up for reelection, Kyrsten Sinema (D-AZ), Angus King (I-ME), and Jon Tester (D-MT) are possible potential defections who may vote for the resolution.
The resolution to override the administration and abolish the regulation permitting finance professionals to use ESG when investing customer’s retirement funds is anticipated to pass the House, which is controlled by the Republicans. It is also expected that the Senate will follow suit.
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