Lawmaker urges opposition to H.R. 2988, says bill would bar ESG consideration and hurt diverse asset managers
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Summary
An unidentified House member urged opposition to H.R. 2988, the Protecting Prudent Investment of Retirement Savings Act, saying it would codify Trump-era limits on environmental, social and governance (ESG) considerations and undermine efforts to expand asset-management opportunities for women- and minority-owned firms.
An unidentified member of the House urged colleagues to oppose H.R. 2988, the Protecting Prudent Investment of Retirement Savings Act, arguing the bill would codify Trump-administration limits on considering environmental, social and governance (ESG) factors in retirement-plan investing and would undermine efforts to expand opportunities for women- and minority-owned asset managers.
The speaker said current law requires plan fiduciaries to make "prudent investment decisions in the best interest of plan participants and beneficiaries," and cautioned that H.R. 2988 would alter how fiduciaries may weigh long-term risks. "Considering whether a real estate investment will literally be underwater because of sea level rise is not ideology," the Unidentified Speaker said, arguing that climate risk can affect returns.
The lawmaker described the bill as codifying two rules from the Trump administration that, in their view, limit fiduciaries' ability to consider ESG factors and to exercise shareholder rights. By contrast, the speaker said, the Biden administration had allowed fiduciaries to consider ESG factors so long as those considerations do not "diminish investment returns."
The speaker also challenged proponents' risk framing, saying studies show some funds perform as well or better than others. The lawmaker contrasted permitting ESG considerations with what they called a tolerance for "clearly risky investments such as cryptocurrency" in retirement plans, saying that inconsistency "makes no sense at all."
On diversity in asset management, the speaker cited a figure — about $82 trillion in retirement assets nationally — and said only "1.4% of those assets are managed by women or minority firms," warning that H.R. 2988 would "needlessly undermine what little progress has been made" in expanding access to investment opportunities for those firms. The Unidentified Speaker questioned whether changing the rules is an appropriate response to those disparities, asking how the 1.4% figure came about and arguing the bill would limit access rather than address root causes.
The speaker closed by urging colleagues to oppose the measure and said they reserved the balance of their time. The transcript does not record a vote or any formal action on H.R. 2988 in the provided segments.
