WASHINGTON, D.C. – Today, Rep. Burgess Owens (UT-04) co-sponsored the Ensuring Sound Guidance (ESG) Act to protect retail investors’ retirement and investment accounts from asset managers who put environmental and social goals ahead of returns. This legislation would require investment advisors and ERISA retirement plan sponsors to prioritize financial returns over non-pecuniary factors when making investment decisions on behalf of their clients.
“ESG forces a partisan environmental and social justice agenda on independent financial institutions, rather than considering monetary factors, undermining objectivity and impartiality,” said Rep. Owens. “The policy push to enforce the politicization of our free market is out-of-touch and harmful to hard working Americans, the nation’s financial strength, and continued economic growth.”
The ESG Act is intended to protect investors from diminished returns because of politically motivated asset managers who prioritize environmental or social goals instead of returns. Under the ESG Act, investors are still allowed to allocate their capital in ways that may not prioritize returns if they choose to do so.
The full text of the bill is available here.
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