The U.S. Impact Investing Alliance, along with over 20 other members of the Coalition on Inclusive Economic Growth, comprised of businesses, investors and nonprofits, submitted a letter in support of the Department of Labor’s (DOL) proposed rules clarifying retirement and pension plan fiduciaries’ use of environmental, social and governance (ESG) factors under the Employee Retirement Income Security Act (ERISA).
Group of 30 Organizations Committed to Inclusive Economic Growth Write in Support of Strengthened CRA
The U.S. Impact Investing Alliance, along with 29 organizations, representing businesses, investors, community lenders and advocates, and aligned around the principles of inclusive economic growth, submitted a letter in support of the Office of the Comptroller of the Currency’s (OCC) proposal to rescind June 2020 changes to Community Reinvestment Act (CRA) regulations that would – if fully implemented – significantly weaken the policy. The signatories applauded the OCC’s decision to pursue a cohesive set of reforms that will modernize and strengthen the CRA alongside its peer regulating agencies - the Federal Deposit Insurance Corporation (FDIC) and the Federal Reserve.
U.S. Impact Investing Alliance Applauds Regulator’s Step Toward Modernized Fiduciary Duty
The U.S. Impact Investment Alliance praised proposed rules published today by the Department of Labor, which provide greatly improved guidance to the managers of 401(k)s and private pension plans, governed under the Employee Retirement Income Security Act (ERISA). Specifically, the rules acknowledge the clear and growing evidence of the financial risks posed by the climate crisis as well as the material importance of corporate America’s governance, workforce and other environmental, social and governance (ESG) practices.
Congressional Support for White House Initiative on Inclusive Economic Growth Proposal
A just and equitable recovery from the intersecting crises of the COVID-19 pandemic and economic fallout, systemic racial injustice and climate change will only be achievable if the public and private sectors work together. The U.S. Impact Investing Alliance applauds the leadership of Representative Dean Phillips (MN), Representative David Cicilline (RI), Senator Mark Warner (VA) and their colleagues in the House and Senate in writing letters to the Biden-Harris Administration in support of the proposed White House Initiative on Inclusive Economic Growth.
U.S. Impact Investing Alliance Applauds SEC and Nasdaq on Progress Toward Improved Corporate Diversity
The U.S. Impact Investing Alliance applauds the SEC’s approval of Nasdaq’s board diversity and disclosure requirements for the companies listed on its exchange. This latest development represents encouraging leadership by Nasdaq and the SEC to improve diversity in corporate America and transparency in the capital markets.
U.S. Impact Investing Alliance Applauds Most Recent Progress Toward CRA Reform Alignment
The U.S. Impact Investing Alliance applauds the Office of the Comptroller of the Currency (OCC) for proposing to rescind a rule from the previous administration that would have significantly weakened the Community Reinvestment Act (CRA). If left to stand, the rule would have jeopardized a critical policy for driving capital to underserved communities at a time when stability is paramount given ongoing challenges such as the COVID-19 pandemic and ensuing economic downturn, systemic racism and the climate crisis.
U.S. Impact Investing Alliance Applauds Step Toward Impact Transparency in Congress
On June 16, 2021, the U.S. House of Representatives passed H.R. 1187, a package of legislation that would require the SEC to mandate disclosures by public companies on environmental, social and governance (ESG) factors, climate risks, political spending and other issues. Taken alongside the SEC’s interest in climate and ESG disclosure, this represents a significant moment for investors and other stakeholders seeking greater transparency in the capital markets.
U.S. Impact Investing Alliance Writes to SEC in Support of Mandated ESG Disclosure
The U.S. Impact Investing Alliance submitted comments earlier this week in support of mandated climate and ESG disclosures by the U.S. Securities and Exchange Commission (SEC). The Alliance was responding to a March request for public input by Commissioner Allison Herren Lee that is expected to set the stage for future rulemakings.
U.S. Impact Investing Alliance Applauds Progress Toward Reaffirming the CRA
The U.S. Impact Investing Alliance is encouraged by the Office of the Comptroller of the Currency’s (OCC) announcement yesterday that they will reconsider the harmful regulatory changes to the Community Reinvestment Act (CRA) that were rushed through during the previous administration. The Alliance urges the OCC to leverage this action as the first step in joining with the Federal Reserve in their CRA reform efforts.
Alliance Applauds Department of Labor Decision to Provide ERISA Guidance on ESG Factors
This week, the Department of Labor announced that it would not enforce two recent rules – on “Financial Factors in Selecting Plan Investments” and “Fiduciary Duties Regarding Proxy Voting and Shareholder Rights” – pending further review and guidance for investors. The U.S. Impact Investing Alliance applauds this important step and continues to call for swift action to reverse the potential negative effects of these rules.
U.S. Impact Investing Alliance Supports Nasdaq Proposal on Board Diversity
Last week, the U.S. Impact Investing Alliance submitted comments to the SEC in support of a proposal from Nasdaq related to board diversity and disclosure. Countless studies have shown that gender and racial diversity can drive positive business performance, and investors are increasingly demanding access to clear and comparable data on these and other material issues. If approved by the SEC, all Nasdaq-listed companies would be required to have at least one female board member as well as one member who self-identifies as an “underrepresented minority or LGBTQ+.” Additionally, companies would be required to report on their board composition in a standardized manner.
A Proposal for a White House Initiative on Inclusive Economic Growth
The Biden-Harris Administration has inherited a multitude of crises, from the pandemic and economic recession, to systemic racial injustices and a crisis of Democracy. Building back better will be a challenge, and so policymakers must leverage every tool at their disposal to ensure success. The U.S. Impact Investing Alliance, along with our partners at B Lab and a growing coalition of over 45 organizations, propose the creation of a White House Initiative on Inclusive Economic Growth, staffed at the NEC, that could play a central coordinating role in promoting equitable economic policy across the Administration. The initiative would specifically seek to bring investor and business representatives to the table, ensuring that the private sector is engaged in the inclusive growth agenda.
U.S. Impact Investing Alliance Submits Comments in Support of Strengthened Community Reinvestment Act
The U.S. Impact Investing Alliance submitted comments to the Federal Reserve earlier today in support of their proposed framework to modernize the Community Reinvestment Act (CRA). A civil rights era policy created to address the racist practice of redlining, the CRA has become the bedrock of the community investing environment here in the United States, lending a stable environment to the place-based work of impact investors.
Five Regulatory Actions Necessary to Support President Biden’s Climate Agenda
President Biden has set out a bold commitment to empower workers and communities, protect public health and the environment, and conserve national treasures. To do so, private capital must be engaged, but unfortunately, harmful regulations leftover from the previous administration would hold us back. The five regulations listed below strip investors of key tools for considering long-term material factors, undermining the administration’s pursuit of social, economic and environmental justice. In accordance with President Biden’s recent Executive Order, we urge the administration to consider rescinding the regulations outlined in this factsheet prepared by the Alliance.
U.S. Impact Investing Alliance Statement on the Insurrection and Injustice
The last week in American life was undoubtedly one of the worst in American history. Tens of thousands of Americans died in the relentless COVID-19 pandemic. Five were killed in an unprecedented eruption of premeditated political violence. And calls for justice in the face of police brutality against Black Americans were once more denied, this time for the shooting of Jacob Blake. Yet statistics make for poor measures of human suffering. Our capacity to grieve is subsumed by urgency and fear. Our anger strains all sense of reason. But our humanity demands we attend to our collective pain and loss.
U.S. Impact Investing Alliance Supports IFRS Foundation Effort on Sustainability Standards
The U.S. Impact Investing Alliance today submitted public comments to the IFRS Foundation in response to the Consultation Paper on Sustainability Reporting. The IFRS Foundation is a not-for-profit international organisation responsible for developing a single set of high-quality global accounting standards, known as IFRS Standards. The Consultation Paper solicits public comment on the proposed creation of a new Sustainability Standards Board (SSB) that would look to promote consistent and comparable corporate reporting on key sustainability issues.
U.S. Impact Investing Alliance Applauds Historic Investment in CDFIs and MDIs in COVID Relief Package
The government spending and economic relief legislation passed by the House and Senate includes a vital set of bipartisan provisions to support community development financial institutions (CDFIs) and minority depository institutions (MDIs). The U.S. Impact Investing Alliance offered its praise for the provisions, which will help bolster community lending for small businesses and nonprofits in the country’s hardest hit communities.
Alliance Urges Incoming Administration to Reverse Harmful DOL Rule
The U.S. Impact Investing Alliance was disheartened to see that today the Department of Labor rushed to finalize an eleventh-hour rulemaking that will harm retirement savers. This latest development in a string of detrimental regulatory moves threatens a fundamental shareholder right to vote proxies, specifically discouraging ERISA-regulated fiduciaries from engaging corporate managers as they consider long-term material factors.
Impact Investing Must Remain a Policy Priority this Year and Beyond
As we await confirmation of key Presidential, Senate and House races, it appears likely that we are on track for two more years of divided government in Washington. This will pose significant challenges to policymakers and advocates alike. The same is true for the champions of impact investing, but we have seen over the last four years and throughout previous administrations that our work continues to have appeal across ideological and partisan divides. At the U.S. Impact Investing Alliance, we remain hard at work today crafting a proactive impact investing policy agenda that can contribute to a just and equitable recovery from ongoing crises.
DOL Rushes to Finalize Anti-ESG Rule Despite Widespread Public Opposition
On Friday, the U.S. Department of Labor finalized a burdensome rule for retirement savers amid an ongoing public health crisis and mere days before the November 3 election. The U.S. Impact Investing Alliance is still analyzing the final rule, but it is clear that our significant concerns remain unaddressed.