California AG Called on President Biden to Veto Resolution to Overturn DOL ESG Retirement Rule

MARCH 14, 2023

California Attorney General Rob Bonta issued a statement urging President Biden to veto a joint resolution to overturn the Department of Labor’s rule that allows for environmental, social, and governance (ESG) considerations in investment decisions for private-sector employee retirement plans. “This isn’t about politics or partisanship – it’s about facing up to the reality of climate change and making smarter decisions for our future,” said AG Bonta. “The U.S. economy is rapidly being reshaped under the weight of the economic, environmental, and human costs of climate change. If fiduciaries ignore ESG factors, the hardworking American employees whose retirement funds they manage will be at a disadvantage. That’s why I urge President Biden to reject this irresponsible legislative effort that will only serve to hurt the future and financial security of American workers. Investors need more transparency and data about the impact of climate change, not less.”

The joint resolution was brought under the Congressional Review Act; a coalition of AGs previously sent a letter urging the Senate not to pass it. The resolution was passed and sent to President Biden.

Biden later vetoed the resolution, and AG Bonta issued the following statement on March 20, 2023: “In California, we believe that information is power, and that investors cannot make informed decisions without all the data and information in front of them. I thank President Biden for his action today rejecting a misguided, and irresponsible, proposal to deny important information to those managing American retirement accounts. This isn’t about politics or partisanship — it’s about making informed, commonsense decisions to protect retirement savings and facing up to the reality and risks of our climate crisis.”