This week in responsible investing, House Republicans have moved forward with baseless and politically motivated investigations into ESG investing despite recent reports showing companies with higher ESG ratings have lower financing costs. That and more below:
A new report found that companies with higher ESG ratings have lower financing costs.
Investor research firm MSCI found that companies with a higher ESG rating, according to their metrics, have lower capital costs. Responding to the findings, Kyle Herrig issued the following statement: “Responsible investing has long had a place in business strategy, and this new report just confirms what many leading CEOs already know to be true. Investors should have the freedom to make the best possible decisions to maximize their bottom line ESG is a growing opportunity that shouldn’t be banned to score cheap political points.”
The House Judiciary Committee doubled down on its unpopular investigation into responsible investing.
This week, House Judiciary Chairman Jim Jordan (R-OH) and Judiciary Subcommittee on Administrative State, Regulatory Reform, and Antitrust Chairman Thomas Massie (R-KY) sent letters to more than 130 companies requesting information about their involvement with ESG.
From UAF’s statement: “This is a politically motivated effort to curry favor with the committee’s Big Oil donors. Poll after poll has shown that voters do not want Congress wasting time on these sham investigations. This probe should not be taken seriously, and the Committee should focus on issues that matter to the American people.”
Almost all corporate board directors expect a “continued or stronger” focus on ESG in the next five years.
UAF issued an ICYMI uplifting new survey research from global corporate leaders regarding their opinions on ESG: A new report led by software service company Diligent, which surveyed more than 800 corporate board members across the United States, United Kingdom, and European Union, shows that almost all (96%) directors expect a “continued or stronger” focus on ESG over the next five years. The new data also shows that 94% of directors have already integrated ESG into either their compensation plans or their strategic goals, suggesting a growing alignment between boards and the C-suite.
Congress backed off the resolution to overturn the Securities Exchange Commission’s (SEC) climate risk disclosure rule.
From UAF’s statement: “This week, Congress hit its deadline to overturn the U.S. Securities and Exchange Commission’s (SEC) climate risk disclosure rule, which requires publicly traded companies to disclose information about greenhouse gas emissions. Efforts to overturn the rule have flagrantly disregarded the demands of the American public, as voters overwhelmingly and across party lines support the SEC’s rule. Since the SEC issued its final ruling earlier this year, members of the House and Senate who are in the pockets of the oil and gas industry have yielded their political power in an attempt to overturn the rule through the Congressional Review Act (CRA).”
The Republican ESG Working Group proposed policies unpopular among Americans.
This week, the “Republican Environmental, Social, and Governance (ESG) Working Group” released a 37-page report proposing several non-binding policies, including restricting investors’ access to their markets of choice.
From UAF’s statement: Today, the “Republican Environmental, Social, and Governance (ESG) Working Group” released its final report after nearly two years of baseless attacks against responsible investing. Led by Oversight and Investigations Subcommittee Chairman Bill Huizenga (MI-04), who has taken hundreds of thousands of dollars in campaign contributions from the oil and gas industry, the 37-page report proposes a number of backwards policies, including restricting investors’ access to their markets of choice.”
Read more:
- ICYMI: New Survey Shows 96% of Corporate Board Directors Expect “Continued or Stronger” Focus on ESG in Next Five Years
- ICYMI: New Report Says Companies With High ESG Ratings Have Lower Financing Costs
- U.S. House Judiciary Committee Doubles Down on Unpopular Probe Into Responsible Investing
- STATEMENT: Republican ESG Working Group Releases Hypocritical Report Proposing Policies Unpopular Among Americans
