The Senate on Wednesday voted to block the Department of Labor rule that allows those managing retirement funds to invest based on environmental, social, and governance (ESG) factors. The White House has signaled President Joe Biden will veto it. NTD speaks to Will Hild, the executive director of Consumers’ Research for analysis. Hild says the claim that preventing investors from prioritizing ESG runs counter to free-market principles is “absurd.” He says the key to the free market in this context is the fiduciary obligation to the client’s return on investment.
Furthermore, Hild asserts that since these investors are handing federal money, such as the federal employee investment plan called the Thrift Savings Plan via BlackRock, they should not be allowed to push a political agenda. Additionally, Hild says that in the same way, the free market does not allow banks and asset managers to embezzle money, they should be barred from investing based on political goals.