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The Scene in Ohio and Oklahoma
Alright, folks, let’s break it down. Ohio and Oklahoma recently jumped on the anti-ESG bandwagon. In Ohio, the lawmakers weren’t messing around when they passed legislation to halt public pension funds from dabbling in Social and Environmental Governance (ESG) investing. The bill, which needs Governor Mike DeWine’s autograph, waves goodbye to investments driven by progressive policies and keeps pension funds from indulging in shareholder activism. Not to be left out, Oklahoma’s Attorney General wants the Supreme Court to revive the Energy Discrimination Act, which hits back at firms snubbing oil and gas.
A Riot of Red States
The list of states waving this anti-ESG flag reads like a roll call, mostly Republican: Texas, Florida, West Virginia, and more have jumped in. These places have decided ESG is akin to a political push. Critics argue investors and companies should focus on financial returns, not left-wing agendas. Isn’t this just a microcosm of the broader national debate? One state sees ESG as corporate governance avant-garde, and another sees a threat to their fossil fuel industries. This push against ESG, particularly in states like Texas and Florida, has resulted in pulling funds from top financial firms they accuse of adopting ESG principles.
ESG Enthusiasts Speak Up
Now, on the flip side, those who love the ESG movement say it’s a no-brainer. Paul Polman, who used to run the joint over at Unilever and now co-pilots IMAGINE, claims ignoring ESG ignores today’s pressing issues. He’s saying nearly nine out of ten investors place climate risks at the top of the list, and ESG-driven investments often beat their benchmarks. Need we spill more ink on that?
The Voice of Opposition
U.S. Sen. Bill Cassidy from the pelican state—Louisiana—introduced a bill to keep people’s retirement accounts solely focused on financial returns. As he put it, investors should get maximum returns without their money going to fund political ideologies. Critics say these ESG mandates weigh companies down with extra costs, which could jack up prices for consumers. They believe it’s about time to slam brakes on this ESG investing train, saying it penalizes states economically.
Counting the Benefits
Meanwhile, Wayne Visser, a guru on sustainable transformation, has listed 10 reasons anyone would want to invest sustainably: risk reduction, better reputation, and increased revenue, to name a few. He says sustainability isn’t just good; it’s the survival code for modern businesses. Visser believes it simplifies a company’s purpose and anticipates regulations. So, no surprises if you start seeing more sustainability in stock portfolios.
What Lies Ahead?
Here’s the twist. This anti-ESG wave is picking up speed as the political weather changes. As ESG advocates keep pushing forward, they face growing opposition from states championing traditional energy sectors. It’s a tale that’s only going to get more dramatic as the nation closely watches how America’s financial landscape will be shaped by these diverging views.
For a deeper dive into the different state legislations on ESG, check out this detailed source.
Doug Bailey, a seasoned journalist based outside Boston, wraps it up. He’s open to a chat at [email protected].
Remember, this ain’t your typical back-and-forth. It’s an ongoing debate leaving ripples across industries. Keep your eyes peeled.
