Today, Congressman Andy Levin (MI-09), member of the House Education and Labor Committee, co-led a letter to Secretary Marty Walsh along with Reps. Axne, DelBene, and García and a diverse group of 19 of colleagues advocating for the reversal of the Trump administration rule on environmental, social and governance (ESG) investing. The letter was sent as a comment as the Department of Labor (DOL) considers a proposed rule to address workers' investments. The proposed rule restores the recognition that workers should have the ability to invest based on their individualized preferences, priorities and values.
"By both correctly noting that certain ESG factors are material and thus can be considered when making an investment decision and that non-material ESG factors are subject to the ‘tie-breaker' standards from previous department guidance, DOL is ending the chilling effect caused by the previous rule and removing unnecessary and burdensome obstacles to regulate sustainable investing prudently," the lawmakers write. "ESG investing is growing tremendously, breaking records year after year. In 2020, ‘for the fifth calendar year in a row, sustainable funds set an annual record [with] net flows reach[ing] $51.1 billion.' This growth is the result of greater interest in sustainable investing, especially among young workers who increasingly want to make personalized decisions when investing for their futures."
"Sustainable and social investing is growing fast in the United States and peer nations. Through the application of ESG factors and ETIs, investors have been able to invest according to their values, bring about positive change, and generate as good or better returns on investment compared to traditional investing methods," the lawmakers continue. "Regulations governing sustainable investing should reflect this reality instead of trying to stifle it for ideological reasons, as the 2020 rule did. We reiterate our strong support for this rule and encourage the Administration to promulgate it with our proposed changes. We look forward to working with DOL to strengthen ERISA plans further and provide workers more investment options that align with their long-term interests."
Members of Congress Levin, Axne, DelBene and García were joined by members of Congress Jimmy Panetta (CA-20), Donald Beyer (VA-08), Mondaire Jones (NY-17), Alexandria Ocasio-Cortez (NY-14), Adam Smith (WA-09), Susan Wild (PA-07), Rashida Tlaib (MI-13), Mark Pocan (WI-02), Judy Chu (CA-27), Tom Suozzi (NY-03), John Larson (CT-01), Dean Phillips (MN-03), Mark DeSaulnier (CA-11), Joe Neguse (CO-02), Chrissy Houlahan (PA-06), Pramila Jayapal (WA-07), Derek Kilmer (WA-06), Suzanne Bonamici (OR-01), Mike Levin (CA-49) and Jamie Raskin (MD-08).
Source:https://andylevin.house.gov/media/press-releases/levin-advocates-values-based-esg-investment-options-workers
