House Republicans are slamming Wall Street companies over their climate-conscious investments, the latest surge in the party’s criticism of environmental, social and governance (ESG) investing.
Republicans on the House Judiciary Committee said Tuesday report He accused major investment companies of “colluding” with climate change groups.
Specifically, they accused major asset managers BlackRock, State Street and Vanguard of being part of a “climate cartel” that also includes activist groups.
The report itself focuses primarily on the actions of activist organizations trying to steer these and other asset managers away from investments in global warming industries like fossil fuels.
Specifically, it claims that a group called “Climate Action 100+” is “trying to intimidate asset managers and weaponize their clients into joining the climate cartel and complying.”
The group, which promotes climate-friendly investments, denied the accusations, calling them “overly politicized” in a statement.
“Investors with climate stewardship practices pursue a common-sense approach that seeks to deliver the best long-term returns for their clients and beneficiaries,” a spokesperson for Climate Action 100+ said in a written statement.
“Climate Action 100+ investors act as independent fiduciaries and are responsible for their individual investment and voting decisions,” the spokesperson added.
State Street withdrew from Climate Action 100+ earlier this year, BlackRock transferred its participation to its international division, and Vanguard is not a member and left the Net Zero Asset Managers Initiative in 2022.
“As an independent asset manager owned by our funds’ investors, Vanguard’s sole mission is to help individual investors achieve their financial goals by giving them the best chances for investment success,” Vanguard spokeswoman Netanel Spero said in a written statement.
Meanwhile, the Republican report harshly criticized the Biden administration, saying it had “failed to meaningfully investigate, let alone take enforcement action against, the climate cartel’s complicity.”
The committee described its findings as part of an “interim” report and said it would continue its investigation.
He also said he would continue to consider whether Congress should pursue legislative reforms to “protect the competitiveness of the U.S. economy.”
With Democrats controlling the Senate and President Biden unlikely to sign the Republican reform plan into law, any legislative effort is unlikely to gain support in the current Congress.
But the effort, combined with Republicans’ broader opposition to ESG investing, could provide insight into the party’s policy agenda if Republicans win the presidential and both houses of Congress this fall.
