Biden uses veto to block non-ESG bill

US President Joe Biden has rejected a Republican proposal to prevent pension funds from basing investment decisions on ESG factors in his first use of a veto.

Last year, the US Labor Department enacted a rule to make it easier for retirement plans to take into account ESG factors in their investment decisions. Republicans then introduced a bill to block it which passed Congress on 1 March when the Senate voted 50-46 to adopt a measure to overturn it.

US President Joe Biden has now vetoed the bill that would have stopped fund managers basing investment decisions on ESG factors.┬áRepublicans say the rule would politicise investing leading to woke investing decisions and hitting the performance of investments. On Twitter, Biden said: “I just signed this veto because the legislation passed by the Congress would put at risk the retirement savings of individuals across the country.”