I’m putting forth this legislation because we know there’s a growing demand for sustainable investing, and Congress should act now to provide the legal certainty necessary to make sure workplace retirement plans are able to offer these options to workers
Provide legal certainty for workplace retirement plans that choose to consider environmental, social and governance factors in investment decisions or offer ESG investment options.
Occurrences
Evidence
President Biden vetoed H.J.Res. 30, the joint resolution disapproving the Labor Department rule titled 'Prudence and Loyalty in Selecting Plan Investments and Exercising Shareholder Rights.'
Axios reported that Biden's first veto blocked a congressional effort to overturn a Labor Department rule allowing retirement fund managers to factor environmental, social and governance considerations into investment decisions.
Assessments
The underlying policy outcome was partly achieved in the same Senate term: the Biden administration's Labor Department rule allowing ERISA fiduciaries to consider ESG factors remained in effect after President Biden vetoed H.J.Res. 30 on March 20, 2023. That preserved room for workplace retirement plans to consider ESG factors and offer ESG-oriented options, which aligns with the promise. But the evidence provided does not show that Tina Smith herself wrote, sponsored, or materially advanced the decisive action that secured that result. Because the outcome depended mainly on executive-branch action rather than demonstrated candidate-specific delivery, this is partial credit rather than full delivery.