In 2022, over a dozen states considered some type of legislation pushing back against ESG investments. Texas, Oklahoma, West Virginia, Kentucky, and Tennessee all now have laws on the books ensuring their state’s contracts or investments do not support ESG policies that run counter to their values and jobs.
States should pass legislation reinforcing that state fund managers have a fiduciary duty to act in the sole financial interest of the shareholder (the state). This ensures state investments are managed and shares are voted in a way that benefits the state and its citizens – not based on ESG preferences.
View Model Legislation #1
States should ensure they only do business with companies that share an interest in the state’s profit, not ones that actively discriminate through ESG policies against the state’s economic interests.
View Model Legislation #2
State legislators should require state electric utility regulatory agencies to develop rules and procedures that promote a reliable electric grid, safeguarding access to affordable and dependable electricity for all citizens.
View Model Legislation #3
States should pass legislation to ensure entities contracting with the state for electric vehicle production certify their production is free from child and slave labor.
View Model Legislation #4
States should amend the Uniform Prudent Management of Institutional Funds Act (UPMIFA) to protect funds managed and invested by state universities and government institutions for charitable purposes. This would ensure institutional endowments are not corrupted for political purposes.
View Model Legislation #5
