A Republican Leader Demands Answers From Investors On ESG Goals

Jim Jordan, the Republican Chair of the U.S. House Judiciary Committee, has sent letters to over 130 investors, demanding clarity on their environmental, social, and governance (ESG) goals. This action underscores the ongoing scrutiny by Republicans of ESG initiatives, which they claim might breach antitrust laws.

Jordan’s letters primarily target investors associated with Climate Action 100+, a coalition comprising around 700 signatories committed to reducing greenhouse gas emissions. The letters seek detailed accounts of any ESG-related demands investors plan to make on companies within their portfolios. Additionally, recipients are required to preserve all documents and communications related to their ESG activities.

The Republican critique of ESG efforts stems partly from concerns about potential job losses in the fossil fuel industry and the perceived economic impact of corporate climate commitments. Meanwhile, the Democratic minority on the committee disputes the notion that ESG initiatives violate antitrust laws, reflecting a broader partisan divide on the issue.

A spokesperson for Ceres, a co-founder of Climate Action 100+, stated that the requested documents had already been provided to the committee and deemed the letters unlikely to yield new insights. The committee has not filed any antitrust lawsuits against climate coalitions but claims responsibility for some asset managers withdrawing from the initiative. This issue is further complicated by ongoing legal battles over President Biden’s rule supporting ESG investing, which overturned a Trump-era restriction.