Should Congress establish a committee that facilitates the flow of capital towards ESG investments?
This bill requires an issuer of securities to annually disclose to shareholders certain environmental, social, and governance metrics and their connection to the long-term business strategy of the issuer. The bill also establishes the Sustainable Finance Advisory Committee that must, among other duties, recommend to the Securities and Exchange Commission policies to facilitate the flow of capital towards environmentally sustainable investments.
Sponsor: Rep. Juan Vargas (Democrat, California, District 51)
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Opponents say
• "It is not the role of the government to insert itself into the social policies of companies by forcing them to disclose their views to unelected bureaucrats in Washington. The decision currently lies with the company as to whether or not to disclose ESG information, and that is where it should stay." Source: Freedom Works
Proponents say
• "We have seen how a company's approach to the climate crisis, diversity among its leadership, and its receptiveness to social change have affected its business in the past, as well as its impact on the public's well-being. This information is essential when deciding whether or not to invest in a company or how to vote on the company's direction. These matters are real and they are relevant." Source: Rep. Juan Vargas (Democrat, California, District 51)
• "This legislation will require the disclosure of key environmental, social, and governance metrics to shareholders of public companies so that corporations can be held accountable for their decision-making relating to equity, justice, and public health." Source: Rep. Steny H. Hoyer (Democrat, Maryland, District 5)
