Madam President, I appreciate my colleagues' remarks today. You know, the issue that we are debating is whether or not retirement plans should be allowed to consider a company's environmental, social, and governance goals when they make…
Madam President, I appreciate my colleagues' remarks today. You know, the issue that we are debating is whether or not retirement plans should be allowed to consider a company's environmental, social, and governance goals when they make investments. That is ESG, and it is pretty simple.
My colleagues and I say that people who make investments for retirement accounts and pensions plans may--they don't have to; they may--consider ESG in their decisions about what stocks to buy so long, of course, as they adhere to their principal fiduciary responsibility, which is to put the financial best interests of their clients first.
Now, on the other hand, our Republican colleagues are saying: No, retirement plans can't consider ESG goals. They are somehow claiming that this rule will undermine free and fair markets--undermine the free market and promote ``woke'' capitalism. And, if you can tell me what that means, then I will look forward to your explanation.
So let's figure out what this is really about.
People invest their life savings for a safe, secure retirement, and a lot of people want those investments in companies that reflect their values, companies that protect the safety of their workers, that have excellent ethics rules in place, guarding against conflicts of interest; companies that are committed to protecting the environment and managing the risks of climate change. In fact, companies with these kinds of positive environmental, social, and governance policies are often good financial investments as well. The two go hand in hand.
The foundation of a free market is that people can decide for themselves where to invest their money, and they should have good, trustworthy information in order to make those decisions so that the market is fair and they don't get taken advantage of.
That is all this ESG rule that we are defending today does. It asserts that investors should have the option, if they choose, to make ESG investments. It is not a mandate. It does not elevate one type of investment over another. All this rule does is allow workplace retirement plans to offer ESG investments as an option to people who want them, provided, of course, that those investments are prudent and provide a safe and secure retirement.
So I can tell you that out in the real world of Minnesota, this is no big deal. For decades, great Minnesota companies have been looking for excellent returns on their investments. That is their job. But they have also been trying to improve how their companies help their community, help their employees, and help the environment. A lot of people would say that is good business.
In fact, ESG investing has been growing in this country for decades. People like it. They want to invest in companies that reflect their values. More than $18 trillion are held in investment funds that follow the ESG investment principle. So this isn't some sort of weird fly-by- night new idea. ESG investing has been routine for years.
But what is new--what is new--is the way in which these extreme Republican politicians whom we see today are trying to turn ESG into their latest tool to rip us apart and to expand their own political power, and that is so hypocritical.
You know, Republicans claim to be believers in a free market and freedom of choice, but, today, with this vote, they are saying you can't even think about basic concerns like protecting the environment and fighting climate change or protecting workers or strong company ethics. You can't even think about those things as you make investments for your retirement. So instead of allowing people to make their own choices about how to invest in their retirement savings, these Republican politicians want to put their political values and the interests of their donors in the middle of your investment decisions.
That is just wrong. It is out of touch, and I don't think it flies-- not in Minnesota and not in most places in this country.
So I hope we can reject this extreme agenda and vote no. This issue is just too important. It is about letting people decide how to secure their own retirement and allowing them to choose investment options that match their values.
To be clear, there are good reasons that people would want to take ESG factors into consideration. It is reasonable to ask whether your retirement is invested in companies that operate sustainably and practice good governance. It is reasonable to say that you don't want to invest in a company with a record of discrimination or mistreating workers.
You know, I have been in business, and I can tell you that these values aren't just good for marketing or investor relations. They are the markers of a healthy, sustainable business--businesses with the capacity to confront risk, to innovate, to diversify, and to meet the needs and challenges of an evolving world for long-term resilience and viability. Businesses that consider these factors do better. It is good business. They make more money.
So, colleagues, I ask for a ``no'' vote, which is a ``yes'' vote for allowing people the freedom to invest their retirement in ways that reflect their values and make money. I also ask my colleagues to join me in my legislation, the Freedom to Invest in a Sustainable Future Act, which would put into law this commonsense rule that we are voting on today.
I commend the Department of Labor for their commonsense rule that we have been talking about, which doesn't force choices. It creates choices.
Let's defeat this resolution and allow people to choose how they want to plan for the future for themselves.
I yield the floor.