Panel advances bill restricting ESG considerations in retirement plans

Representative Rick Allen introduced H.R. 29,88 to restrict the use of environmental, social and governance (ESG) factors by ERISA fiduciaries and to impose additional notice and record‑keeping requirements for brokerage windows and proxy voting. He described the bill as restoring fiduciary duties to ‘‘complete and undivided loyalty to the workers' financial interests’’ and to bar consideration of non‑pecuniary factors unless documented.

Opponents including Ranking Member Scott and Representative Adams said ESG considerations can be a legitimate part of risk mitigation and long‑term return‑seeking and argued the bill would impose burdensome paperwork and constrain fiduciaries' ability to consider long‑term risks such as climate exposure. Scott and others also noted industry concerns about the Trump‑era rule and cautioned against codifying complex proxy‑voting requirements that could chill shareholder engagement.

The amendment in the nature of a substitute was adopted and the committee ordered H.R. 29,88 reported to the House by recorded vote, 21–15.