Providing for Congressional Disapproval of the Rule Submitted By the Department of Labor Relating to ``Prudence and Loyalty in Selecting Plan Investments and Exercising Shareholder Rights''

Floor Speech

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Mr. DeSAULNIER. Mr. Speaker, I thank the gentleman for yielding.

The Department of Labor's environmental, social, and governance rule is good for retirees, and it is good for the American economy.

Allowing ESG considerations can help financial professionals identify investments that will be sustainable in the long term and in the best interest of their clients.

The rule is not an ESG mandate. It simply clarifies that the professionals who make investment decisions for retirement plans do not violate their fiduciary duties by merely considering ESG factors.

Existing law already says that these professionals' primary purpose is to make the best financial choices for the plans, and this rule does not change that at all.

It merely is a recognition that if a company is inherently risky because of the business they do or their internal practices, its stock could suffer in the long run.

Just like American consumers can be motivated to disinvest from companies that pollute or mistreat their workers, now investors will have the same abilities.

As the ranking member of the Subcommittee on Health, Employment, Labor, and Pensions, I have seen overwhelming support for this rule, especially from the financial industry.

Rolling it back would be a significant step backward. I strongly oppose H.J. Res. 30 and encourage all Members to do the same so they can leave retirement plan decisions to the retirees and the professionals they respect and they work with.

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