House Republican ESG Working Group Releases Interim Report

A House Republican ESG Working Group led by Representative Bill Huizenga (R-MI) and other Republican members of the House Financial Services Committee issued a preliminary report titled, “Preliminary Report on ESG Climate Related Financial Services Concerns.” The report focuses primarily on the environmental aspect of ESG factors and examines the impacts of the Biden administration’s proposed legislative and regulatory policies on capital markets and economic performance. The report specifically touches on the Securities and Exchange Commission’s climate proposals, noting that “Congress has not granted the SEC the authority to create regulations that compel companies to disclose general information about ESG-related issues.” According to the report, Republican members on the House Financial Services Committee will continue to introduce legislation that reforms the proxy voting system, promotes transparency in the proxy advisory process, strengthens the oversight of ESG-focused regulatory efforts, and protects US entities from the impacts of climate regulatory efforts. The House Financial Services Committee is likely to spend July holding hearings on ESG-related issues, including at least one mark-up.

Click here to read the Working Group’s interim report.
Click here to read a policy alert from K&L Gates covering the report.