Fallon, McClain: Democrats Gamble with Americans’ Investments and Retirement to Fund Woke ESG Policies

WASHINGTON—Subcommittee on Economic Growth, Energy Policy, and Regulatory Affairs Chairman Pat Fallon (R-Texas) and Subcommittee on Health Care and Financial Services Chairwoman Lisa McClain (R-Mich.) delivered opening remarks at today’s joint hearing titled “ESG Part II: The Cascading Impacts of ESG Compliance.” Subcommittee Chairs Fallon and McClain warned that Democrats are forcing their woke political agenda through environmental, social, and governance (ESG) policies while disregarding the real economic, energy, and national security interests of the United States. Progressive ESG policies jeopardize returns on investment for retirees and shareholders at a time when Americans are already struggling to keep up with their retirement plans in President Biden’s damaged economy.

Below are key excerpts from Economic Growth, Energy Policy, and Regulatory Affairs Subcommittee Chairman Pat Fallon’s (R-Texas) remarks as prepared for delivery.

“Millions of Americans across the country trust that their investments will be used to make a profit and hopefully one that they can live on comfortably in retirement. Because what we’re really after, what we’re investing in long-term, is financial security. But these days, it’s not crazy for many Americans to wonder will I even be able to afford retirement?

“This Administration has driven inflation through the roof and pushed the economy to the brink of a major recession. Now, due to Democrats’ ESG push, asset managers are prioritizing ESG goals over profit and risking Americans’ hard-earned money.

“With ESG investing, businesses are now tasked with accounting, not only for their own carbon footprint, but for the footprint of their contractors and suppliers, and the race and gender of their corporate boards, instead of the merit and performance of those same corporate board members.”

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“To secure capital—the lifeblood of any business—companies large and small must now hire teams of lawyers and compliance consultants to comb through internal data and estimate exactly what their greenhouse gas emissions might be or how many points they’ve scored with activist organizations for checking the right boxes on an ever-changing list of social norms.”

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“ESG is being utilized in an attempt to rewrite the fabric of America with ‘woke’ policies that deliver nothing but higher prices, cultural oppression, not to mention jeopardizing returns on investment for retirees and regular Americans.”

Below are key excerpts from Health Care and Financial Services Subcommittee Chairwoman Lisa McClain’s (R-Mich.) remarks as prepared for delivery.

“Money managers’ unrestricted ability to pursue ESG pledges without their clients’ knowledge is doing the opposite. It’s not their job to pursue political agendas. It’s their job to invest their clients’ money by putting their clients first and focus on rates of return. In fact, it’s their fiduciary duty to do so. Yet, we are seeing more and more instances of woke corporations importing European values over American values. And they aren’t even telling their clients about the financial risks associated with adopting these values.

“Even so-called ‘neutral’ non-ESG investment funds are increasingly voting for ESG resolutions. In some cases, more so than ESG funds. And they are not telling their clients. Why is there a lack of transparency? What are they hiding?”

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“I am all for the freedom to invest your own money into causes YOU believe in. But that’s not what’s happening here. Managers are investing YOUR money in the causes THEY believe in. And we are seeing real consequences for Americans’ retirements.”