The U.S. House of Representatives Sept. 19 approved a comprehensive investor reform package that includes a provision to require the Securities and Exchange Commission (SEC) to report on the effects of the European Union’s directives on corporate sustainability, particularly on U.S. companies, consumers, and investors.
The House advanced to the U.S. Senate the Prioritizing Economic Growth Over Woke Policies Act, H.R. 4790, which is sponsored by U.S. Rep. Bill Huizenga (R-MI). The larger package includes a provision authored by U.S. Rep. Dan Meuser (R-PA) from his Protecting U.S. Business Sovereignty Act, H.R. 4653.
Rep. Meuser’s legislation specifically targets foreign overreach by addressing the EU’s Corporate Sustainability Due Diligence Directive (CSDDD), which Meuser says imposes politically motivated environmental and social mandates on U.S. businesses operating in European markets, threatens U.S. economic sovereignty, and harms the national economy.
If the larger package is enacted, then the provision would require the SEC to study how the CSDDD harms U.S. businesses.
“Let me be clear — Republicans are not against ESG as an investment choice,” said Meuser. “If individual investors want to prioritize environmental, social, or governance factors, that’s their freedom.
“What we oppose is when these ideological views are mandated — when investors and businesses are forced to comply with burdensome regulations that prioritize political ideology over profitability,” he said Friday.
The legislation would prioritize economic growth, limit regulatory overreach, and safeguard the freedom of choice for American investors, added the congressman.