RALEIGH — Republican leaders on the House Financial Services Committee are creating a first-of-its-kind task force to coordinate their response to various proposals related to the environmental, social and governance (ESG) movement, Fox News reported.
Financial Services Committee Chairman Patrick McHenry (NC-10) said the ESG working group would lead the Republican effort to combat the threat ESG policies pose to U.S. capital markets. He added that Financial Services Oversight Subcommittee Chairman Bill Huizenga, R-Mich., would lead the initiative and appointed another eight GOP committee members to serve on the working group.
“Progressives are trying to do with American businesses what they already did to our public education system—using our institutions to force their far-left ideology on the American people,” McHenry said in a statement. “Their latest tool in these efforts is environmental, social, and governance proposals. This group will develop a comprehensive approach to ESG that protects the financial interests of everyday investors and ensures our capital markets remain the envy of the world.”
According to McHenry, the working group will be focused on reining in regulatory overreach from the Securities and Exchange Commission (SEC), reinforce the materiality standard — which requires corporations to disclose key information to investors — “as a pillar” of the financial disclosure regime and hold those who misuse the proxy process that gives shareholders a saying in company decisions accountable.
The task force will additionally organize efforts to push back on the ESG movement and develop detailed policy proposals.