With control of the House in the next Congress and a renewed energy, Republican lawmakers could launch a slew of congressional inquiries into environmental, social and governance issues (ESG).
Speaking last month at the Cato Institute’s 2022 Summit on Financial Regulation, asset management counsel Jamie McGinnis said, “[House Financial Services Committee ranking member] Patrick McHenry is very interested in practicing vigorous oversight of the SEC, given their very, very extensive rule-making agenda in a relatively short time frame for comment periods.”
Roll Call also published a story sharing insight into what the ESG landscape could look like as we move into 2023.
“I would anticipate hearings involving asset managers, perhaps even ESG ratings agencies, proxy adviser hearings in the coming years,” Jamie said. While companies and the SEC may find themselves defending ESG-related activities for at least the next two years, experts anticipate that Republicans’ anti-ESG crusade will stop at the House's probes.
“Ultimately, that is the extent of the federal effect on ESG rules and regulations from the change from the election,” Jamie said. “I would not anticipate significant changes to what the Biden administration does as a result of that.”
Stay Up To Date with Ropes & Gray
Ropes & Gray attorneys provide timely analysis on legal developments, court decisions and changes in legislation and regulations.
Stay in the loop with all things Ropes & Gray, and find our more about our people, culture, initiatives and everything that’s happening.
We regularly notify our clients and contacts of significant legal developments, news, webinars and teleconferences that affect their industries.