President Joseph Biden delivered his first veto on Monday after House decided to prevent a Labor Department regulation enabling retirement plans to consider the long-term effects of social elements and climate change on investments — a move Conservatives say is a “woke” policy that harms pensioners’ pocketbook.
Biden’s Twitter post announcing his first veto
I just vetoed my first bill.
— President Biden (@POTUS) March 20, 2023
This bill would risk your retirement savings by making it illegal to consider risk factors MAGA House Republicans don't like.
Your plan manager should be able to protect your hard-earned savings — whether Rep. Marjorie Taylor Greene likes it or not. pic.twitter.com/PxuoJBdEee
“I just signed this veto because the legislation enacted by Congress will jeopardize Americans’ retirement savings throughout the nation,” Biden stated in a video broadcast to Twitter. “They couldn’t consider investments that climate change caused by overpaying CEOs might damage.”
Senate Republicans and two Democrats voted on the bill on March 1, requiring a simple majority to succeed. Senators. Jon Tester (D-Mont.) and Joe Manchin (D-W.Va.), who are both up for reelection in Republican areas next year, sided with Republicans.
Last month, the GOP-controlled House of Representatives voted on the plan. “Retirement plan fiduciaries should be empowered to examine any aspect that optimizes financial returns for retirees throughout the nation,” Biden stated in a statement to Congress.
“It is not controversial; it is a simple sense,” he remarked.
Biden stated he would reject the law before it reached his desk. A two-thirds majority in Congress would be required to overcome Biden’s veto.
President Donald Trump vetoed ten laws, whereas President Barack Obama vetoed twelve.
What is ESG?
Environmental, social, and governance, or ESG for short, is an investment technique that considers a company’s environmental and social risks as part of a larger financial examination.
It is popular among large pension funds that invest the retirement savings of millions of employees and ordinary investors.
Republican politicians and conservative advocacy organizations have slammed the ESG regulation.
Florida Gov. Ron DeSantis, who is expected to vie for the Republican presidential nomination in 2024, has emerged as a leader in the anti-ESG campaign.
Numerous Republican states, including Florida, Texas, and West Virginia, have begun probes due to the regulation.
Conservative advocacy organizations supported by right-wing financiers have launched a campaign in statehouses nationwide. They argue that ESG is merely another example of a “woke” impact on corporate business.
