Ginny Cleaveland, Deputy Press Secretary, Fossil-Free Finance, Sierra Club, ginny.cleaveland@sierraclub.org, 415-508-8498 (Pacific Time)
WASHINGTON, DC — President Joe Biden issued his first presidential veto today, rejecting an attempt in the House and Senate to use the Congressional Review Act (CRA) to nullify the Department of Labor’s (DOL) recent rule that restored the ability for managers of retirement plans to consider environmental, social, and corporate governance (ESG) factors when making investment decisions and voting on shareholder proposals. The House and Senate both voted to pass the CRA several weeks ago.
The DOL rule provides options for workers and retirees who want to ensure the fund managers of their pensions consider climate risks and provide options to invest in sustainable businesses. The DOL reinstated the rule in November 2022, undoing a push by the Trump administration to impose additional costs and burdens meant to discourage fund managers from considering climate change in their decision-making.
In response to the news, the Sierra Club’s executive director Ben Jealous issued the following statement:
“We applaud President Biden for vetoing this dangerous effort that would have prevented Americans from considering the real-world impacts of the climate crisis on their investments. This is an act of solidarity with hardworking Americans over powerful corporate donors and fossil fuel interests, which have long attempted to roll back progress on workers’ rights and climate change. This veto maintains the freedom of workers and retirees to consider any and all material risks to their savings, and ensures that every American can adequately plan for their retirement with a long-term investing mindset.”
BACKGROUND
In February 2023, the Sierra Club joined dozens of investors, workers, and advocacy groups in sending a series of letters to House and Senate lawmakers opposing Republican attempts to circumvent the DOL rule.
In November 2022, the Sierra Club applauded the DOL for restoring the rule, saying the decision “lays the groundwork for future rulemakings that establish affirmative duties of retirement fund fiduciaries to manage climate and other systemic risks.”
In December 2021, during the DOL public comment period, the Sierra Club joined the Americans for Financial Reform Education Fund and a dozen advocacy groups in showcasing support for the proposed rule.
About the Sierra Club
The Sierra Club is America’s largest and most influential grassroots environmental organization, with millions of members and supporters. In addition to protecting every person's right to get outdoors and access the healing power of nature, the Sierra Club works to promote clean energy, safeguard the health of our communities, protect wildlife, and preserve our remaining wild places through grassroots activism, public education, lobbying, and legal action. For more information, visit www.sierraclub.org.