Boyle Leads Letter to Oppose Labor Rule to Protect Socially Responsible Investments
WASHINGTON, DC – Congressman Brendan F. Boyle (PA-02), co-leading with Congressman Andy Levin (MI-09) and Congresswoman Suzan DelBene (WA-01), sent a letter to Department of Labor Secretary Eugene Scalia to oppose a proposed rule that limits companies’ ability to use environmental, social, governance (ESG) principles in their investments. The Boyle letter was co-signed by 42 Members of Congress.
“ESG investing has been widely used in the global investment community to incent corporate social responsibility and to positively influence corporate behavior, especially in regard to sustainability efforts,” said Congressman Boyle. “This proposed rule baselessly assumes that corporate social responsibility cannot coexist with financial responsibility. The reality is, investments that use ESG principles tend to outperform alternative methods. By imposing these additional barriers, it can have a chilling effect on ERISA investments moving forward. I strongly urge for the withdrawal of the rule.”
On June 23, 2020, the U.S. Department of Labor issued a proposed rule that would limit when and how Employee Retirement Income Security Act (ERISA) fiduciaries can select plan investments based on environmental, social, or governance factors when making investment decisions.
A copy of the letter can be found here.