{"id":1970447,"date":"2023-07-12T06:10:01","date_gmt":"2023-07-12T10:10:01","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/house-gop-looks-to-get-in-on-anti-esg-action-with-blitz-of-hearings\/"},"modified":"2023-07-12T06:12:48","modified_gmt":"2023-07-12T10:12:48","slug":"house-gop-looks-to-get-in-on-anti-esg-action-with-blitz-of-hearings","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/house-gop-looks-to-get-in-on-anti-esg-action-with-blitz-of-hearings\/","title":{"rendered":"House Republicans aim to join the anti-ESG movement through a series of hearings."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">26<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fhouse-gop-looks-to-get-in-on-anti-esg-action-with-blitz-of-hearings%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1970447&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><h2>Republicans Push Back Against ESG in Capitol Hill Hearings<\/h2>\n<p>Republicans are using a series of hearings on Capitol Hill this week to emphasize their opposition to the federal government\u2019s embrace of environmental, social, and governance (ESG) investing and generate conversation surrounding this once-obscure topic.<\/p>\n<p>This week, the House Financial Services Committee will convene multiple hearings that dive into the machinations of ESG investing. The integration of ESG into the financial sector has grown enormously in recent years, and Republican pushback has grown in tandem. This latest congressional foray shows that the issue will play a role in the coming elections and in legislation coming down the line.<\/p>\n<h3>ESG: A Controversial Topic<\/h3>\n<p>Rep. Bryan Steil (R-WI), a member of the committee, told the Washington Examiner during an interview ahead of the hearings that the reason ESG has become a big issue before Congress is because of just how hard the Biden administration is pushing ESG through federal agencies and the rulemaking process.<\/p>\n<p>\u201cI think it\u2019s a pretty rational understanding to realize that not only are the American people pushing back, but members of Congress and me in particular have been bird-dogging this for some time,\u201d Steil said.<\/p>\n<p>There is one hearing set for Wednesday, two planned for Thursday, and one that will be held on Friday of this week.<\/p>\n<p>While the explicit goal of the blitz is to further delve into ESG and push forward legislation addressing concerns about ESG investing and proxy voting, President Joe Biden is unlikely to back any related bills. Therefore, the drive is also a messaging display and an indication of what changes might be coming should the GOP win the White House in 2024.<\/p>\n<p>Will Hild, the executive director of the conservative group Consumers\u2019 Research (which has been a major critic of ESG), said that interest and public awareness in ESG has exploded over the past couple of years, in large part due to vocal pushback from the Right. They have cast ESG as an attempt to distort the free market and even the culture of the U.S. through money and corporate influence.<\/p>\n<p>\u201cBasically, zero to 60,\u201d Hild told the Washington Examiner of the growing awareness of ESG. \u201cI mean, 18 to 24 months ago, very few people had heard or cared about ESG, didn\u2019t really understand the ways it was impacting the average person\u2019s life \u2026 in the last 24 months that has changed dramatically.\u201d<\/p>\n<p>Hild said that he sees ESG as a way that the Left is effecting change while circumventing the ballot box \u2014 something that has a harmful effect on the lives of investors and consumers even without them being aware.<\/p>\n<h3>Focus on Proxy Voting and Proxy Advisers<\/h3>\n<p>Within the ESG bucket, a major focus of this week\u2019s hearings is on the proxy voting process and proxy advisers. Proxy voting is a process that allows shareholders to vote on key issues while not <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/house-gop-looks-to-get-in-on-anti-esg-action-with-blitz-of-hearings\/\" title=\"House Republicans aim to join the anti-ESG movement through a series of hearings.\">personally attending corporations&#8217; annual shareholder meetings<\/a>. Republicans have accused large asset managers, who vote proxies on behalf of their clients, of using the power to leverage ESG goals.<\/p>\n<p>Hild said that proxy voting is a way that <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/lost-retirement-why-401ks-are-not-ok-and-not-just-because-of-the-lousy-economy\/\" title=\"Lost Retirement: Why 401(k)s Are Not OK (and Not Just Because of the Lousy Economy)\">big asset managers<\/a> \u201cthreaten\u201d the boards and C-suites in corporate America. Asset managers have thousands of \u201ccorporate engagements\u201d per year with corporate boards, anything from a phone call to an in-person meeting, where they communicate their priorities, Hild said.<\/p>\n<p>\u201cThe thing that they meet on the most, the thing that they brag they have the most corporate engagements around, is around so-called net-zero policies pushing net-zero carbon emissions as a matter of policy at these companies,\u201d he said. \u201cAnd part of the way that they influence these companies is to threaten them with either voting for or supporting the creation of shareholder proposals that the board would have to fight or deal with and potentially lose.\u201d<\/p>\n<p>A priority for these congressional hearings, and an important first step, would be examining how that process might be being abused and what changes can be instituted to curb potential abuse, Hild said.<\/p>\n<p>Republicans also have taken issue with proxy advisory firms, which they contend over-prioritize environmental and political goals. Hild said that there are two issues surrounding proxy advisers. The first is a structural one in that there are only two major players in the space \u2014 Glass Lewis and International Shareholder Services. The second issue is that those two firms have become \u201cjust as woke\u201d as big asset managers like BlackRock, Hild argued.<\/p>\n<p>Steil said another priority is examining the moves that federal agencies have made in the past couple of years to push ESG.<\/p>\n<p>\u201cWhat we\u2019ve seen is the Left try to weaponize the federal agencies, in particular federal agencies such as the Securities and Exchange Commission and others that oversee our financial services industry to drive forward their political agenda,\u201d Steil said.<\/p>\n<p>The Wisconsin lawmaker said it is incumbent upon Congress to push back against the ESG drive by the Biden administration.<\/p>\n<h3>Republican Opposition at the State Level<\/h3>\n<p>There has also been considerable Republican opposition to ESG at the state level, particularly from GOP attorneys general and state treasurers.<\/p>\n<p>For instance, in May, Oklahoma\u2019s treasurer announced that the state would stop doing business with more than a dozen financial firms over accusations that they \u201cboycott\u201d the energy industry.<\/p>\n<p>Gov. Ron DeSantis (R-FL) announced anti-ESG legislation in February that builds off previous actions he has taken and would prohibit the use of ESG in all investment decisions at the state and local level, ban state and local entities from any consideration of ESG in the contracting process, and block state and local governments from weighing ESG when issuing municipal bonds.<\/p>\n<p>Biden was forced to make the first veto of his presidency this year after Congress passed a resolution to cancel a Labor Department rule that allows <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/the-labor-department-wants-to-put-your-retirement-savings-at-work-for-the-left\/\" title=\"The Labor Department Wants to Put Your Retirement Savings at Work for the Left\">retirement plan managers<\/a> to weigh ESG factors when making investments. Centrist Sens. Joe Manchin (D-WV) and Jon Tester (D-MT) joined with Republicans on the issue in the narrowly divided Senate.<\/p>\n<p>While this week is jam-packed with ESG-related hearings, the topic is expected to be explored in the coming weeks as well. Rep. Andy Barr (R-KY), the chairman of the Financial Institutions and Monetary Policy subcommittee of Financial Services, recently declared July to be \u201cESG month.\u201d<\/p>\n<p>\u201cWe\u2019re tracking toward a markup of these anti-ESG bills toward the end of July,\u201d he said.<\/p>\n<p><em>Click <a href=\"https:\/\/www.washingtonexaminer.com\/news\/republicans-push-back-against-esg-in-capitol-hill-hearings\">here<\/a> to read more from the Washington Examiner.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Republicans are seizing the opportunity to voice their disapproval of the government&#8217;s support for ESG and spark discussions on this previously overlooked subject. The House Financial Services Committee will hold several hearings this week, delving into the intricacies of environmental, social, and governance investing. ESG integration is in the spotlight.<\/p>\n","protected":false},"author":1,"featured_media":1970448,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[538],"tags":[],"class_list":["post-1970447","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-washington-examiner"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1970447","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1970447"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1970447\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1970448"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1970447"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1970447"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1970447"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}