ESG and its effects on 401k plans

[aboucher]

The government recently did a veto on a bill that would require investments in Retirement funds not be required to meet the Environment, Social, and Government requirements, rather than on profitability.  The Silicone Valley Bank failure shows that they contributed/invested $5 billion in Green New Deal initiatives, but then could not pay the $2 billion

"Silicon Valley Bank, the bank of the world’s most innovative companies and their investors, today announced it has committed to provide at least $5 billion by 2027 in loans, investments and other financing to support sustainability efforts and the company has set a goal to achieve carbon neutral operations by 2025."

"The company believes it has about $2.2 billion of liquidity.

“In addition to cash and its interests in SVB Capital and SVB Securities, SVB Financial Group has other valuable investment securities accounts and other assets for which it is also exploring strategic alternatives,” the company said in a statement.

Its funded debt is about $3.3 billion and it has $3.7 billion of preferred equity."

[DirkB349973]

If I care about the environment, diversity, and corporate governance, I should be able to choose funds that mirror my concerns. Since the bill passed with the help of 2 democrats, I don't think the veto will be overturned. Good riddance to more tools trying to control my life.

[GailL1]

The legislation that he vetoed had passed both Houses in a bipartisan way - 

I won’t comment on the SVB problem but I don’t want my retirement funds invested in some ESG (environmental - societal - governance) scheme unless it is doing what it should to increase my retirement money.  That is not the.case sometimes.

Definitely Government Overreach -