A senior GOP lawmaker introduced legislation to stop the White House’s insistence that financial institutions consider “woke” issues like climate change when making decisions about how to invest retirement savings for American workers.
Montana Republican Senator Steve Daines said that the legislation was intended to stop President Biden pressuring banks across the country to accept his “woke” ideology.
Biden issued an executive directive last year directing the Secretary for Labor to identify steps that could be taken in order to protect pension plans against “climate-related financial risk.”
The White House stated at the time that the move was necessary to ensure transparency about how financial giants chose to invest America’s hard-earned retirement money.
The administration released a statement saying that “We know that climate crises, whether they are rising seas, extreme weather or other factors, present increasing risks to infrastructure, investments and businesses.” These risks are often hidden.”
This directive shattered regulations that were put in place by Donald Trump and required banks to consider only profitability when choosing to invest rather than issues such as race or climate change.
Daines, who is a member of the Senate Finance Committee said that Biden’s executive orders allowed Wall Street to embrace radical ideologies such as environmental social governance. This means that companies should prioritise social goals over profits.
His bill codifies the Trump-era regulations to stop the spread of such tactics.
Wall Street banks have been trying to increase investment in green energy over the past few years. These areas are less profitable but more popular with Democrats. Despite this, some of the nation’s most prominent banks are accused of discriminating against fossil fuel firms by attempting to reduce investment.
The White House’s extensive regulatory power has helped to accelerate the shift away from fossil fuels. Janet Yellen, Treasury Secretary, has established a “climate hub” in her department to accelerate the country’s transition away from fossil fuels.
