Today, Congresswoman Maxine Waters (D-CA), the top Democrat on the House Financial Services Committee, delivered the following opening statement during an Oversight and Investigations Subcommittee hearing entitled, “The Fall of ESG: Scrutinizing the Failed Use of Environmental, Social, & Governance Standards and the Influence of Proxy Advisors.”

Thank you very much. Environmental, Social, and Governance or E-S-G principles and practices are smart business strategies that benefit everyone. Last Congress the Committee received hours and hours of testimony explaining how companies that prioritize these practices foster innovation, improve employee satisfaction, and build stronger, more resilient businesses. It is just a fact that diverse teams consistently outperform non-diverse teams, by driving better decisions and higher profitability. Shareholder proposals play a crucial role holding our public companies accountable and pushing for this type of long-term, sustainable growth.

For workers and communities, these practices, and the shareholder proposals that press for them, help ensure fair wages, safe working conditions, and equitable opportunities, helping to reduce inequality and build thriving local economies. It’s just smart economics, creating value for shareholders, employees, and society alike. I yield back.

###