ESG Funds Attracting Investments And Republican Pushback

Nearly 50 Congressional Republicans sent a letter to the Federal Reserve Board last week expressing concern over the Fed’s consideration of including climate change in the “stress test” for regulated banks.

Big Banks and Asset Management firms like Blackrock are directing more money to exchange traded funds (ETFs) that tout environmental, social and corporate governance (ESG) practices.

Last month, the Fed, for the first time, included climate among the risks outlined in its Financial Stability Report.

In the final days of his Administration, President Trump, with the support of Congressional Republicans, is attempting to limit how big banks and fund managers can use ESG factors as a sole investment determiner.

The U.S. Department of Labor recently finalized a rule to limit private retirement plan manager’s leeway to invest based on ESG factors.

President-elect Biden’s priorities will create an inviting platform for continued sustainable and ESG investments.

President-elect Biden’s focus on climate and ESG factors is evidenced by his creation of a White House Climate Envoy and nominations of Pete Buttigieg to lead the U.S. Department of Transportation and former Michigan Governor Jennifer Granholm as Energy Secretary.

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