Proposal to Roll Back ESG Investing Approved in House

The House passed H.R. 5339, the Roll back ESG To Increase Retirement Earnings Act (RETIRE Act), by a vote of 217-206. The bill, introduced by Representative Rick Allen (R-GA), would amend ERISA to require that fiduciary action regarding investments be based entirely on pecuniary factors, and the interests of plan participants cannot be subordinated by non-pecuniary factors.

H.J. 30, a resolution for congressional disapproval of the Department of Labor’s “ESG” rule was passed by the House and Senate last year but ultimately vetoed by President Biden. If this bill were to get past the Senate, it likely faces a similar demise.