With the woke investing movement known as Environmental Social and Governance gaining steam in corporate boardrooms and asset management firms across the U.S., red states are pushing back.
The ESG counteroffensive includes economic and legislative moves ranging from the leveraging of public investment to laws mandating that fiduciaries of public funds make investment choices based on financial rather than ideological criteria.
As the leader of a nonprofit group whose mission is to promote economic freedom, sound public policy, and responsible financial management at the state level, I’m honored to help our nation’s financial officers practice good stewardship of taxpayer dollars. Their work often includes managing pension funds that are vital to millions of Americans’ retirement security. Over the past few years, a growing threat called ESG (Environmental, Social, Governance) has been negatively impacting state pension systems, ultimately putting retirees at risk. Sadly, our nation’s state financial officers and the retirees they have a fiduciary responsibility to protect are increasingly under siege by ESG ideologues who are motivated by politics rather than economics.
Pro-market elected officials and thought leaders are fighting back against progressive activists’ creeping capture of corporate America through the Environmental Social and Governance movement..
ESG investment strategies, increasingly prevalent among large asset management firms, seek to leverage passive investors’ assets to steer corporate decision-making to promote progressive social and environmental priorities. ESG has often been compared to the “social credit” system used by China’s ruling communist elite to enforce political conformity on its population.