Joe Biden used his presidential veto for the first time on Monday, rejecting a law initiated by the Republican opposition and voted with the support of Democrats, which limits responsible investments in pension funds, AFP reported.

In his statement, the US president said that the bill, which rejects the inclusion of environmental, social or governance criteria – so-called “ESG” – in financial decisions, threatens “retirement savings by making it illegal to consider risk factors.”

The bill, which targets measures introduced by the U.S. Department of Labor in January that make it easier for such investments in pension funds, drew Republicans to denounce the ideological position.

“Whoever manages your retirement needs to be able to protect your hard-earned savings, whether Marjorie Taylor Green likes it or not,” Biden said, referring to a member of America’s hard-right group.

Voted with the help of Democrats

Republicans were able to pass this legislation thanks to their very slim majority in the House of Representatives. The bill also passed the Democratic-controlled Senate, with two senators from the president’s party joining and three abstaining.

The bill’s author, Republican Andy Barr, said the measure “politicizes Americans’ retirement funds and puts their pensions at risk.”

The White House immediately made it clear that Joe Biden would exercise his veto power.

The text, which was rejected on Monday, was also widely criticized by environmental organizations.

“Preventing people from considering the financial risks of climate change, the effects of which they are already experiencing, will only hurt their economies,” said one, the Sierra Club.