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.
State investments, such as state employee pension funds, are typically managed by fund managers who vote the shares on behalf of the shareholder. States should pass legislation reinforcing that state fund managers have a primary fiduciary duty to act in the sole financial interest of the shareholder (i.e. the state) and are not beholden to 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 the demise of it. Legislators should protect state contracts from companies that are actively discriminating through ESG policies against economic interests such as fossil fuel, agriculture, mining, firearm, and timber industries.View Model Legislation #2