House Republicans have recently criticized Wall Street firms for their involvement in climate-focused investing, labeling it as collusion with climate groups. The House Judiciary Committee released a report accusing major asset managers such as BlackRock, State Street, and Vanguard of being part of a “climate cartel” along with activist groups.
The report specifically targets activist organizations like Climate Action 100+, which encourages investments in climate-friendly initiatives. However, Climate Action 100+ denied the accusations, stating that they are focused on delivering long-term returns for their clients and beneficiaries through responsible investment stewardship.
While State Street has left Climate Action 100+ and BlackRock has shifted its participation, Vanguard is not a member and withdrew from the Net Zero Asset Managers Initiative in 2022. Vanguard emphasized its commitment to helping individual investors achieve financial success through its investment strategies.
In addition to criticizing Wall Street firms, the GOP report also takes aim at the Biden administration for failing to investigate the alleged collusion within the climate cartel. The report describes its findings as interim and pledges to continue the investigation, exploring potential legislative reforms to safeguard competition in the American economy.
Although legislative efforts may face challenges in the current political landscape, with the Senate controlled by Democrats and President Biden unlikely to support Republican reforms, the GOP’s stance against ESG investing offers insight into their agenda for the future. If the party secures the presidency and both chambers of Congress in the upcoming elections, their position on environmental, social, and governance investing could shape future policies.