Biden Issues First Veto, Rejects Bill Aimed at Blocking ESG Investing

FOR IMMEDIATE RELEASE

MEDIA CONTACT: Stefanie Spear, [email protected], 216-387-1609

BERKELEY, CA—MARCH 20, 2023—President Biden today issued the first veto of his presidency on a resolution to overturn the Congressional Review Act (CRA) bill intended to overturn a Department of Labor (DOL) rule that empowers retirement plan fiduciaries to consider material environmental, social, and governance (ESG) risks when making investment and proxy voting decisions.

The effort to roll back the DOL rule was an attempt to force retirement plan fiduciaries from mitigating the growing material risk from environmental and social issues such as climate change and racial justice. The rollback would have narrowed fiduciaries’ ability to protect their beneficiaries and restrict basic freedom of choice. Biden’s decision to veto the bill is aligned with the administration's goal of upholding basic tenets of the free market and protecting workers' retirement savings from climate change, injustice, and other material financial risks.

In response to Biden’s veto today, As You Sow’s CEO Andrew Behar had this to say:

“President Biden’s veto of the CRA bill demonstrates that common sense and free markets are his top priority. While some politicians are playing politics with retirees’ hard-earned savings, this administration is protecting American workers’ and retirees’ financial security by allowing them to make investment choices without government interference.”

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As You Sow is the nation’s leading shareholder advocacy nonprofit, with a 30-year track record promoting environmental and social corporate responsibility and advancing values-aligned investing. Its issue areas include climate change, ocean plastics, pesticides, racial justice, workplace diversity, and executive compensation. Click here for As You Sow’s shareholder resolution tracker.