GRACELIN BASKARAN: Biden’s pro-ESG veto will err on the side of free markets
US President Joe Biden has been in the Oval Office for just over two years, which has seen the Covid-19 pandemic, high inflation and Russia’s invasion of Ukraine. Yet it’s only now that he’s drawing near to the use of his first presidential veto, and it’s over something relatively obscure: pension funds.
A presidential veto of congressional legislation is not lightly used in the US system of checks and balances. Biden’s three predecessors used between 10 and 12 throughout their tenures. Biden is set to use his inaugural one to protect a White House rule that allows — but does not mandate — fiduciaries of private pension funds to include environmental, social & governance (ESG) considerations when choosing investment options, and use shareholder rights such as proxy voting for plan-held securities. ..
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