Washington, D.C. – U.S. Congressman Andy Barr (KY-06), a senior member of the House Financial Services Committee, has reintroduced the Ensuring Sound Guidance (ESG) Act to safeguard retail investors from asset managers who subordinate financial returns to political or ideological goals.
The legislation ensures that investment advisors prioritize financial returns over non-pecuniary factors—such as environmental or social objectives—when managing their clients’ portfolios.
“Institutional investors and retirement plan sponsors have a fiduciary duty to maximize returns—not to advance political agendas,” said Congressman Barr. “The ESG Act protects hardworking Americans saving for retirement from asset managers who put progressive activism ahead of financial performance. It also ensures continued access to capital for traditional energy producers at a time when American families are already paying more at the pump due to failed energy policies.”
The Ensuring Sound Guidance Act reflects growing concerns that politically motivated investment strategies are threatening Americans’ long-term financial security and distorting capital markets.