With two weeks of work left before lawmakers turn their focus to November elections, House Republicans hope to push through legislation that would limit the use of “woke” investing principles.
The House will vote on two bill packages that address the use of environmental, social and governance factors in shareholder decisions. Republicans have targeted the ESG movement for years, saying that it does companies and investors a disservice by prioritizing what they deem as political factors over the bottom line.
H.R. 4790, the “Prioritizing Economic Growth Over Woke Policies Act,” from the Financial Services Committee, looks to limit the federal government’s ability to compel companies to disclose nonfinancial information, such as board demographics or environmental impact, among other provisions.
Under the bill, companies and trusts would only need to reveal nonfinancial information in response to a federal rule if the company deems that information to have material impact on shareholders’ voting or investment decisions.
