Sen. Mike Braun is speaking publicly for the first time since his bill that would have banned investors on Wall Street from taking what has widely become known as ESG into how they invest your money was vetoed by President Biden.
The bill was the first one to be vetoed by the president during his time in office.
ESG stands for environmental, social, and governance. It represents factors such as how a company handles environmental and social issues that are taken into account in how well a company does on Wall Street. Braun believes this will have an adverse effect on your retirement savings.
“Get the best investment out there based on the numbers, not a woke agenda,” Braun said on Fox News.
He said that investors putting your money into “woke” companies and not companies, such as oil and gas stocks, would leave a lot of money on the table for you.
“Say avoiding oil and gas stocks. That difference in 2.6-percent, actually, on 8.9-percent being where it would be. That’s nearly a 30-percent difference,” Braun said.
There are statistics out there to support the opposite of Braun’s claims. The consulting firm PwC released stats recently that Global ESG assets in the stock market would grow from around $18 trillion in 2021 to $33 trillion in 2026, nearly an increase of two-fold over a five-year period.
Braun argued that trading on Wall Street should primarily be about “the numbers”, meaning the rate of return based on profitability. He added that if people want to invest based on environmental and social issues then that’s fine, but he said those types of investments should be “ancillary” and not a primary form of trading.
Congress is not expected to try and override the veto despite the bill passing with bipartisan support. Braun said that there is not enough support for the bill in both chambers to get the two-thirds support necessary to override.