Original Article

Over 100 conservative leaders and groups, led by Advancing American Freedom (AAF), a political advocacy group headed by former Vice President Mike Pence, are supporting a resolution aimed at blocking the Biden administration’s promotion of the “woke capital agenda.” The resolution was introduced by Senator Mike Braun and Representative Andy Barr.

The Biden administration is promoting the use of ESG (environment, social, and governance) standards in investment decisions. However, recent studies by universities such as UCLA and NYU found that ESG standards often underperform compared to the broader market.

AAF wrote a letter, signed by over 100 conservative groups, calling on Congress to roll back the Biden administration’s rule allowing retirement plan managers to consider ESG factors. The letter cites a study by the University of Chicago which found that mutual funds with high ESG scores underperform those with low ESG scores.

The AAF has also announced its third “Future of Freedom” legislative agenda series, aimed at targeting ESG and protecting Americans’ retirement plans. The letter calls for the Biden administration’s rule to be overturned through the Congressional Review Act. It was signed by conservative organizations such as Heritage Action, America First Policy Institute, and state treasurers from several states.

Republican and Democrat lawmakers are targeting the Biden administration’s ESG investment priorities, warning Americans that these may conflict with their financial goals. A group of 25 states filed a lawsuit last month over the rule, claiming it puts millions of Americans’ retirement plans “at risk.”