Originally published May 10, 2023 9:27 am PDT
House Committee on Oversight and Accountability Chairman James Comer (R-Ky.) on Wednesday criticized Environmental, Social, and Governance (ESG) practices as a front for liberal activism and far-left ideology during a full committee hearing.
In his opening remarks, Representative Comer expressed concern that asset managers and activist shareholders are using ESG commitments to advance a political agenda with their clients’ money, often without their knowledge or consent.
An ‘ESG Global Asset Manager Survey’ conducted by the CFA Institute found a “full 85% of asset managers reported that ESG has become a larger priority within their company’s overall investment strategy in the past year.”
“ESG is just window dressing for liberal activism and radical far-left ideology,” Comer stated, arguing that ESG practices often conflict with clients’ best interests and are part of a coordinated effort by unelected organizations to enforce their policies on American taxpayers, investors, and retirees.
The Kentucky representative also accused the Biden Administration of prioritizing ESG policies over the country’s economic, energy, and national security needs.
He referenced President Biden’s veto of a bipartisan bill that would have reinforced fund managers’ fiduciary duty to maximize returns on pensions, instead of focusing on ESG efforts.
“No administration should be able to gamble with Americans’ retirements to fund its own political agenda in the private market,” Comer declared.
He insisted that policy issues should be decided by elected officials accountable to voters, rather than through market manipulation and bureaucratic action.
Comer also emphasized that trillions of dollars in retirement plan assets are at stake, and even slight reductions in returns due to ESG policies can have long-term impacts on Americans’ retirement savings.
He criticized the ESG agenda for prioritizing leftist ideology over investment growth.
“The ESG agenda prioritizes leftist ideology over the growth of retirees’ investments. This is an injustice to those who shoulder the burden for their retirement savings,” he said.
Comer pledged that the Committee would continue to investigate ESG practices and hold unelected bureaucrats accountable for pushing their interests on the American people.
He warned various government agencies, including the SEC, Federal Reserve, EPA, Department of Energy, and State Department, that the Committee would be closely monitoring their actions.
“Whether it’s the SEC and Federal Reserve; the EPA and Department of Energy; the Pentagon; the State Department, know this: we are watching,” Comer concluded.
