Levin Statement on Department of Labor Rule Targeting Sustainable Investments

November 2, 2020
Press Release
“By instituting a rule that makes it harder for institutional investors to shift capital into sustainable funds, President Trump’s Department of Labor is again showing its antipathy toward working people and utter disregard for the worsening environmental crisis that necessitates a fundamental transformation of our economy.”

WASHINGTON, D.C. – Congressman Andy Levin (MI-09) today released the following statement in response to the Department of Labor (DOL) announcing a final rule making Environmental, Sustainable, Governance (ESG) investing more difficult for plan fiduciaries.

“By instituting a rule that makes it harder for institutional investors to shift capital into sustainable funds, President Trump’s Department of Labor is again showing its antipathy toward working people and utter disregard for the worsening environmental crisis that necessitates a fundamental transformation of our economy. But the Department’s final rule isn’t just an affront to workers who want their retirement money to build a better future for their children—it’s also bad economics. Research is mounting that ESG funds perform as well or better than their traditional counterparts.

“How could the DOL finalize a rule that rejects out-of-hand the future of best investment practices? Simple: By ignoring the vast majority of the over 8,000 public comments made on the rule before its finalization. By one estimate, 95 percent of the public comments were critical of the rule.

“If the Department of Labor won’t act in the interest of American workers and retirees, then Congress must address the situation with legislation that protects our investments, our environment, our retirement and our economy. I am garnering support for a legislative effort to combat the Department’s harmful rule and return ESG principles to their rightful place as a sound investment strategy for socially and environmentally conscious investors.”

 

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