According to recent reports, Senator Joe Manchin, a Democrat from West Virginia, has expressed his apprehension towards the Environmental, Social and Governance (ESG) investing and climate regulations proposed by the Biden administration, citing concerns that they may have a detrimental impact on the American economy as a whole. ESG, which is also referred to as sustainable investing, is a form of investment that considers a company’s policies on environmental concerns, gun control, abortion, or other issues, rather than solely focusing on their profitability.
Even Democrats know Biden's climate policies are dangerous for America https://t.co/ZGs0QeLwit
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Senator Manchin and his fellow Democrat, Senator Jon Tester of Montana, joined 48 Republicans in voting to reverse the Securities and Exchange Commission’s (SEC) regulations issued in November that would permit retirement fund managers to use ESG. On Tuesday, the House of Representatives voted to eliminate the regulation, but the bill may face a veto from President Joe Biden.
The Biden administration has made clear its commitment to eliminating the use of fossil fuels and has taken several measures towards this goal. In July, President Biden issued a set of executive orders aimed at addressing the perceived dangers posed by climate change. Additionally, he cancelled offshore oil and gas leases in May, introduced fresh regulations for onshore drilling in April, and revoked the permit for the Keystone XL pipeline in January 2021.
Regrettably, ESG investing of this kind has already led to multiple crises in various other nations. For instance, Sri Lanka’s ban on chemical fertilizers resulted in a 50% reduction in crop yields in 2021, and Ghana experienced blackouts. As a reaction to this situation, Missouri disclosed that it would be withdrawing all its assets from BlackRock on October 18, citing the company’s promotion of ESG as a “significant breach of fiduciary duty.” Similarly, Florida pulled out $2 billion from BlackRock in December for the same reason, and four other states have also announced that they will be withdrawing their assets.
It is evident that the Biden administration’s proposed ESG investing and climate regulations are a cause for concern. It is understandable why Senator Manchin is worried about the potential economic impact these regulations could have on the United States. It is also concerning that other countries have already experienced negative consequences from ESG investing. Before enacting any proposed regulations, the Biden administration must carefully consider the potential economic implications. Failure to do so may result in harm to the economy and leave many Americans unemployed.
Source: The Daily Caller