AFSCME President Lee Saunders released the following statement in support of President Joe Biden’s veto of a congressional resolution that would overturn the Labor Department’s rule titled “Prudence and Loyalty in Selecting Plan Investments and Exercising Shareholder Rights”:
“Decisions about working families’ hard-earned retirement savings belong in the hands of investment professionals, not politicians. The Labor Department’s balanced, common-sense regulation affirms the freedom of pension funds to invest in a responsible way. That means giving full consideration to factors like workers’ rights, CEO compensation, local economic development, affordable housing and clean energy, all of which hold promising growth potential. The Biden administration’s policy does not require anyone to take these factors into account, nor does it encourage unnecessary risks or any sacrifice of financial returns. It simply removes barriers imposed by the previous administration that have limited investor choice to serve the agenda of corporate special interests.
“The fact is that social impact and profitability very often go hand in hand, with many studies confirming that ESG investing yields positive returns. Today’s veto will allow retirees to continue enjoying economic security, while also doing their part to strengthen their communities and advance core values like freedom, justice and equality – which, in turn, enhance long term shareholder value and profitability.”