The House Subcommittee on Oversight and Investigations, part of the House Financial Services Committee, has scheduled a hearing entitled ” The Fall of ESG: Scrutinizing the Failed Use of Environmental, Social, & Governance Standards and the Influence of Proxy Advisors.”
The hearing was initially scheduled for this past July but has been rescheduled for Tuesday, September 10, at 2 PM ET.
ESG, once a hot financial service topic with big money rushing to provide opportunities for investors, has dimmed considerably as more rational minds step in. The Securities and Exchange Commission’s attempt to mandate climate impact with new disclosure requirements has engendered ridicule for the agency. Today, the consensus is that social issues should be an option for investors, but regulators and governments should steer clear of demanding costly and opaque rules that are inefficient and simply do not accomplish stated goals.
House Republicans published a document on ESG ambitions earlier this month highlighting the problems.
CI will be certain to update on the hearing once the memo and witnesses are posted.