It is Biden’s first veto during his administration.

A bill proposed by Republican lawmakers in the United States would seek to ban a retirement investment rule that allows retirement fund managers to consider the impact of climate change and other environmental, social and governance factors when choosing investments.

The resolution would rescind a Department of Labor rule and passed both houses of Congress with Democratic Senators Joe Manchin of West Virginia and Jon Tester of Montana voting with Republicans in the Senate.

Joe Biden, the U.S. president, vetoed the bill and shared the explanation in a video uploaded on his Twitter profile.

“I just signed this veto because the legislation passed by Congress would put the retirement savings of people across the country at risk. They could not take into consideration investments that would not be impacted by the weather, impacted by executives overpaying, and that’s why I decided to veto it, it makes sense to veto it,” the president said.

“This bill would put your retirement savings at risk by making it illegal to consider risk factors that House MAGA Republicans don’t like. Your plan administrator should be able to protect your hard-earned savings whether Rep. Marjorie Taylor Greene likes it or not,” Biden tweeted.

Prior to the congressional vote on the bill, the White House said the order would be vetoed if it reached Joe Biden’s desk.

“The Biden-Harris Administration’s 2022 rule makes clear that…fiduciaries may consider factors such as corporate responsibility and transparency, climate, and liability risks if they find them relevant to the analysis of an investment’s risk and return, just as they would prudently consider other relevant factors,” the White House said in a statement.” (I)

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