The National Association of Manufacturers has gained some traction in pushing back against ESG regulations. The House Financial Services Committee, which spent the last month holding hearings about environmental, social and governance policies that impact American businesses — passed proposed legislation that included measures to protect manufacturers and investors.

NAM President and CEO Jay Timmons reported that NAM has been fighting for manufacturers “every step of the way.”

The issue: Manufacturers in the U.S. are at the forefront of climate stewardship and innovation even as they power the U.S. economy, yet politically motivated activists and proxy advisory firms are making it difficult for manufacturers to succeed.

Recent actions from the U.S. Securities and Exchange Commission have empowered these groups. From unworkable ESG disclosure mandates to new standards encouraging shareholder activism to a lack of oversight of proxy firms, manufacturers are getting squeezed.

NAM has pressed Congress to curb the impact of activists, proxy firms and the SEC on public company governance.

 “Congress must step in to depoliticize the business decisions that impact the lives and life savings of millions of Americans,” said Timmons. “Manufacturers are determined to create jobs, lead the economy and improve the quality of life for all Americans. We are counting on [Congress’] leadership to counter the SEC’s regulatory overreach and help us achieve these goals.”

The House committee has embraced NAM’s proposed reforms, a huge victory for manufacturers across the United States. The legislation approved by the committee would:

* Prevent activists from hijacking the proxy ballot in pursuit of agendas unrelated to long-term business growth and shareholder value creation;

* Rein in proxy advisory firms and limit their outsized influence on corporate governance;

* Reinforce asset managers’ fiduciary duty to Main Street investors and retirees; and

* Ease ESG disclosure mandates by requiring that public companies only report information that is material to their shareholders.