Less than a week before the midterm elections, Republican lawmakers on Capitol Hill are already gearing up to investigate what they see as “woke capitalism,” a reference to Wall Street firms that treat climate change as an economic risk.
10 steps you can take to lower your carbon footprint
Polls suggest the GOP will retake the House, and Republicans there are preparing to grill the chief executives of big financial firms as well as Gary Gensler, the Democratic chairman of the Securities and Exchange Commission, about their efforts to curb climate change. In the Senate, where polls show a toss-up battle for control of the chamber, key senators are pushing legislation to punish businesses that prioritize environmental, social and governance causes — known as ESG — rather than pure profits.
The moves are sure to escalate the battle over ESG investing and have a further chilling effect on Wall Street, where some CEOs are scrambling to emphasize that their firms are still investing in fossil fuels.
Rep. Garland “Andy” Barr (R-Ky.) said in an interview that ESG principles “will be one of the major focuses of oversight of a Republican majority” on the House Financial Services Committee, which oversees the nation’s banking, insurance and real estate sectors.
“My view is that ESG investing is a cancer within our capital markets,” Barr said. “It is a fraud on American investors.”
The SEC “is a target of our oversight because of this 534-page monstrosity of a climate disclosure regulation,” he added, referring to a proposed rule that would require all publicly traded companies to disclose their greenhouse gas emissions and the risks they face from climate change.
Not everyone is convinced that the Wall Street firms face a real threat from a Republican takeover of Congress. Some see the GOP moves as political theater intended to satisfy the party’s base and fuel the nation’s ongoing culture wars.
The GOP is engaged in “a lot of political hay making,” said Ivan Frishberg, chief sustainability officer at Amalgamated Bank, which does not do business with fossil fuel companies. “But I don’t think this is changing what asset managers or banks are doing in terms of their approach to either their stewardship of assets in a changing climate, or participation in the climate initiatives that they’re a part of.”
Yet supporters of sustainable investing are bracing for intense scrutiny if Democrats fare badly in the midterms, leading to high-profile hearings and grilling of administration officials.
Rep. Frank D. Lucas (R-Okla.) said he would prefer to seek the testimony of Gensler and other Biden administration officials before hauling in the chief executives of big financial firms such as BlackRock, the world’s largest asset manager. Lucas said he would recommend this approach to Rep. Patrick T. McHenry (R-N.C.), who would become chair of the Financial Services Committee if the chamber changes hands.
And Rep. Blaine Luetkemeyer (R-Mo.) said he hopes to call in the heads of the three big investment advisers — BlackRock, Vanguard and State Street — that have used their economic power to curb climate change and advance other causes that are popular among liberals.
McHenry was not immediately available for an interview. The SEC did not respond to a request for comment.
10 steps you can take to lower your carbon footprint
Polls suggest the GOP will retake the House, and Republicans there are preparing to grill the chief executives of big financial firms as well as Gary Gensler, the Democratic chairman of the Securities and Exchange Commission, about their efforts to curb climate change. In the Senate, where polls show a toss-up battle for control of the chamber, key senators are pushing legislation to punish businesses that prioritize environmental, social and governance causes — known as ESG — rather than pure profits.
The moves are sure to escalate the battle over ESG investing and have a further chilling effect on Wall Street, where some CEOs are scrambling to emphasize that their firms are still investing in fossil fuels.
Rep. Garland “Andy” Barr (R-Ky.) said in an interview that ESG principles “will be one of the major focuses of oversight of a Republican majority” on the House Financial Services Committee, which oversees the nation’s banking, insurance and real estate sectors.
“My view is that ESG investing is a cancer within our capital markets,” Barr said. “It is a fraud on American investors.”
The SEC “is a target of our oversight because of this 534-page monstrosity of a climate disclosure regulation,” he added, referring to a proposed rule that would require all publicly traded companies to disclose their greenhouse gas emissions and the risks they face from climate change.
Not everyone is convinced that the Wall Street firms face a real threat from a Republican takeover of Congress. Some see the GOP moves as political theater intended to satisfy the party’s base and fuel the nation’s ongoing culture wars.
The GOP is engaged in “a lot of political hay making,” said Ivan Frishberg, chief sustainability officer at Amalgamated Bank, which does not do business with fossil fuel companies. “But I don’t think this is changing what asset managers or banks are doing in terms of their approach to either their stewardship of assets in a changing climate, or participation in the climate initiatives that they’re a part of.”
Yet supporters of sustainable investing are bracing for intense scrutiny if Democrats fare badly in the midterms, leading to high-profile hearings and grilling of administration officials.
Rep. Frank D. Lucas (R-Okla.) said he would prefer to seek the testimony of Gensler and other Biden administration officials before hauling in the chief executives of big financial firms such as BlackRock, the world’s largest asset manager. Lucas said he would recommend this approach to Rep. Patrick T. McHenry (R-N.C.), who would become chair of the Financial Services Committee if the chamber changes hands.
And Rep. Blaine Luetkemeyer (R-Mo.) said he hopes to call in the heads of the three big investment advisers — BlackRock, Vanguard and State Street — that have used their economic power to curb climate change and advance other causes that are popular among liberals.
McHenry was not immediately available for an interview. The SEC did not respond to a request for comment.