[Congressional Record Volume 156, Number 128 (Wednesday, September 22, 2010)]
[Extensions of Remarks]
[Page E1692]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




              FEDERAL EMPLOYEES RESPONSIBLE INVESTMENT ACT

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                         HON. JAMES R. LANGEVIN

                            of rhode island

                    in the house of representatives

                     Wednesday, September 22, 2010

  Mr. LANGEVIN. Madam Speaker, today I am reintroducing the Federal 
Employees Responsible Investment Act, which would add a socially 
responsible investment option to the Thrift Savings Plan.
  The reckless actions of financial institutions and corporations that 
contributed to our nation's recession have provided countless 
illustrations of the need to place a greater emphasis on good corporate 
governance, as well as social and environmental practices that 
contribute to safety and sustainability. We must create an environment 
in which businesses take care of--and are held accountable to--their 
shareholders, employees and customers. Companies should be encouraged 
to implement sustainable environmental policies and practices, promote 
solid workplace relations and produce safe products.
  While Federal employees currently have several investment options for 
their Thrift Savings Plan (TSP) contributions, they are unable to 
choose one of the fastest-growing categories of investment--socially 
responsible investment. Investors are increasingly turning to socially 
responsible investment (SRI) options because good corporate practices 
are often an indicator of good management, financial success and long-
term stability. In 2009, three out of four large cap SRI mutual funds 
outperformed the Standard & Poor's (S&P) 500 Index by an average of 6 
percentage points, according to data analyzed by the Social Investment 
Forum, a national association made up of over 400 financial 
professionals and institutions. A majority of these funds have also 
outperformed the S&P 500 over three years and over 10 years.
  Federal employees deserve the opportunity to invest in companies that 
embrace the same integrity in their practices that government employees 
work to uphold. The Federal Employees Responsible Investment Act would 
direct the Federal Retirement Thrift Investment Board (FRTIB) to select 
a ``Corporate Responsibility Index'' as an option for TSP investment. 
The index would include companies that meet strict financial criteria, 
in addition to having strong corporate governance, sustainable 
environmental policies and practices, solid workplace relations, 
positive community involvement, safe products, and respect for human 
rights around the world. Under this bill, the FRTIB would select an 
index that best meets Federal employees' needs and demonstrates returns 
comparable to the other investment options available under the TSP.
  Making an investment in companies that are committed to corporate 
responsibility will have a positive impact on our financial system, as 
well as empower federal employees to reward companies that share their 
values. I encourage my colleagues to support this measure.

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