The ESG Initiative at the Wharton School
Biden’s veto supports free markets, not ‘woke’ capitalism
Vice Dean Witold Henisz argues that Biden’s first veto supports free markets in the hard work of analyzing the long-term determinants of financial performance, not ‘woke’ capitalism.
In March, President Joe Biden issued the first veto of his presidency, rejecting a proposal that would limit retirement fund managers from considering environmental, social, and governance factors in their investment decisions.
Professor Witold Henisz, Vice Dean of Wharton’s ESG Initiative, argues in a CNN opinion piece that the veto supports free markets in their assessments of long-term financial performance, which could be affected by factors like the degree of global warming or success transitioning to clean energy. “ESG investing is not about values, nor is it woke or ideological. It’s about being fiduciarily responsible,” he writes.