Washington, D.C. — Today, Senator Ted Budd (R-NC) helped introduce the Ensuring Sound Guidance (ESG) Act.
The legislation would require investment advisors and retirement plan sponsors to consider principally financial factors like maximizing returns and minimizing risk unless a client gives them explicit permission to consider partisan ESG factors.
The bill was led by Senator Tom Cotton (R-AR).
Bill text may be found here.
Senator Budd said in a statement:
“Americans’ hard-earned dollars should be invested in a way that maximizes financial returns, instead of advancing a radical woke agenda. Thank you to Senator Cotton for leading a bill that protects investors and gets politics out of retirement accounts.”
Senator Cotton said in a statement:
“Investment funds like Blackrock that millions of Americans’ trust with their hard-earned savings should prioritize investments that result in the highest returns—not fund ESG scams. My bill will make sure investment fund managers are making the best financial decisions on behalf of their clients.”