A once-obscure financial term is now at the center of a Republican “anti-woke” crusade.
On Monday, President Biden issued the first veto of his presidency on a measure that would have overturned a Labor Department rule allowing retirement fund managers to consider environmental and social impacts when making investment decisions. The strategy is more widely known as ESG: a shorthand for environmental, social, and governance criteria investors can use to evaluate which companies to buy shares in.
The vetoed resolution, led by congressional Republicans, is the latest in a series of attacks against what GOP lawmakers call “woke capitalism.” Since 2021, Florida, Texas, Louisiana, South Carolina, and several other red states have pulled billions in state funds out of BlackRock and other investment firms that support ESG. At least seven Republican-controlled states have enacted policies and 13 others have introduced bills to prohibit applying ESG principles in state investments like public pensions.
The rancor ... Read more
