House GOP Launches "ESG Month"

July 10, 2023

House Financial Services Committee (HFSC) Republicans have named July “ESG Month” and plan to hold six hearings and a legislative vote in the coming weeks:

  • Full committee hearing: “Protecting Investor Interests: Examining Environmental and Social Policy in Financial Regulation” (July 12)
  • Capital Markets subcommittee hearing on the proxy process (July 13)
  • Oversight subcommittee hearing on proxy advisory firms (July 13)
  • Housing and Insurance subcommittee hearing on ESG-related issues (July 14)
  • Capital Markets subcommittee hearing on the SEC Division of Corporation Finance (July 18)
  • Financial Institutions subcommittee hearing on climate risk and financial regulators (July 18)
  • Committee vote on ESG-related bills (July 26)

What is their focus? As reported in a recent edition of CREFC’s Policy and Capital Markets Briefings, on June 23, the HFSC issued an interim report “outlining Republicans’ efforts to protect the financial interest of everyday investors from progressive activists.”

In an interview with Politico, Rep. Bill Huizenga, who is leading the ESG working group, outlined a few focus areas:

  • Proxy Voting: Reform the proxy voting system to safeguard the interests of retail investors;
  • Proxy Advisory: Promote transparency, accountability, and accuracy in the proxy advisory system;
  • Asset Managers: Increase transparency and oversight of large asset managers to ensure their practices reflect the pecuniary interest of retail investors; and
  • Securities and Exchange Commission (SEC): Outline concerns related to the SEC’s proposed climate disclosure requirements and insufficient focus on capital formation.

Why it matters: Although Republicans have stepped up their criticism of ESG, legislative action continues to be unlikely with the Biden Administration and Democratic Senate. However, Rep. Huizenga states:

“I don't view it just as an exercise in futility…If you've got senators talking about it in their own committee hearings, for example, and getting co-sponsorships and getting companion legislation introduced, that maybe hopefully starts getting the attention.”

Contact Sairah Burki ( with questions on ESG and sustainability. 


Sairah Burki
Managing Director, Regulatory Affairs

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