Senate sends bill nullifying Biden’s ESG investing rule to president’s desk

The Senate approved a resolution on Wednesday that aims to reverse a Biden administration rule on environmental, social and governance (ESG) investing, setting up what could be the first veto of Biden’s presidency. 

The Senate voted 50-46 to block the ESG rule, with two Democrats, Sens. Joe Manchin (W.Va.) and Jon Tester (Mont.), joining Republicans in opposing the Biden administration policy. 

The measure already passed the House on Tuesday and will now head to Biden’s desk. The White House has said that Biden would veto the resolution. 

In general, ESG refers to efforts to invest in an environmentally-conscious or otherwise ethical way. The rule in question clarifies that money managers can weigh climate change and other ESG factors when they make decisions for retirement investments. It replaces a Trump-era rule that the Biden administration says discouraged consideration of ESG factors “even in cases where it is in the financial interest of plans to take such considerations into account.”