BGOV Bill Analysis: H.R. 5339, ESG Retirement Investing

Retirement plan fiduciaries would have to prioritize returns over environmental, social, and governance factors when make investment decisions under a modified version of H.R. 5339.

The measure combines four Republican bills advanced in committee last year that take aim at the rise of ESG investing in private retirement plans, including by reinstating Trump administration restrictions on ESG investing.

The Labor Department finalized a rule in December 2022 that allows retirement plan fiduciaries to consider ESG factors as long as they don’t sacrifice returns or bring on additional risk, reversing the Trump-era guidelines. The rule faces a legal challenge from ...