WASHINGTON, D.C. – Today in a full House Financial Services Committee hearing entitled, “Protecting Investor Interests: Examining Environmental and Social Policy in Financial Regulation” Congressman Blaine Luetkemeyer (MO-03) questioned witnesses about the effects of Environmental, Social, and Governance (ESG) policies on American investors and the global economy.

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Representative Blaine Luetkemeyer: Even Mr. Fink the other day with BlackRock made the comment that he was ashamed about his investment policy with regards to ESG. I think Vanguard has pulled out of the net zero over in Europe, so they’re beginning to understand that there’s concern. My point is, they have a fiduciary responsibility to the people they’re investing this money for. Are they showing this? Are they disclosing this?

Mr. Lawrence Cunningham, Mayer Brown Special Counsel: It’s commonly said that following ESG practices is good for the long-term economic interests of a company or of a fund, but the empirical evidence doesn’t support that assertion… I think you’ve pinpointed a very serious problem for the funds. I think they recognize the problem and they’re struggling to resolve it.