Ginny Cleaveland, Deputy Press Secretary, Fossil-Free Finance, Sierra Club, ginny.cleaveland@sierraclub.org, 415-508-8498 (Pacific Time)
WASHINGTON, DC — The Senate today voted in support of a Congressional Review Act (CRA) measure 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 Senate vote came just one day after the House passed the measure, largely along party lines. President Biden has said he would veto the measure.
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 new executive director Ben Jealous issued the following statement:
“Worker and retiree retirement plans are not a political game. It is disappointing that some politicians are choosing to engage in a desperate ploy to help corporate polluters subvert the free market and ignore climate change. Preventing people from considering the financial risks of climate change they are already experiencing only serves to hurt Americans’ savings.
“President Biden should veto this dangerous effort. The Sierra Club looks forward to continuing the urgent work of building a more just, sustainable, and accessible financial system for all.”
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.
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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.