Republican officials are attacking investing with environmental, social, and governance considerations in mind. Wall Street's vast sustainable operations are already being scrutinized by investors and regulators.
The pushback from politicians is getting more pointed.
The impact of anti-ESG legislation and political rhetoric, coming as politicians seek to raise their profiles ahead of the US mid-term elections, is not yet known.
They add to a challenging moment for Esg investors and big US banks and asset managers, all of which have heavily invested in Esg products and teams, and could challenge the perception and embrace of Esg. The first month of outflows from US equity exchange-traded funds in three years took place in May.
Morgan Stanley equity analysts said in a June report that they believe many of the proposals and policies that push back on ESG may affect sentiment more than long-term growth.
The treasurers, governors, and state legislators are in charge of certain aspects of the ESGecosystem. They use their online platforms to get people to follow them. The next Congress will take action to end this scam after Sen. Cotton called on the Department of Justice and Congress to crack down on ESG investing.
S&P Global, the world's largest money manager and an influential proponent of ESG investing, is often the subject of their critique. These are corporations that sell products that appeal to investors who want to see their values reflected in their portfolios. Large financial firms' Esg strategies are often painted as functions of left-leaning agendas by these officials.
This push is part of a larger shift of Republicans challenging corporate America, a departure from years past, when the party was often aligned with interests of big business.
The Niskanen Center's vice president of government affairs said that Republicans will use anti-ESG issues in the culture wars as a way to suggest government overreach and drum up support for Republicans.
"We are a fiduciary to our clients, helping them navigate investment risks and opportunities so they can reach their long-term financial goals, not engineering specific decarbonization outcomes in the real economy," said a spokesman for BlackRock.
Key GOP players are targeting ESG investing.
The State Financial Officers Foundation, a group of conservative state finance officials, will be chaired by Schroder.
The treasurer said in a letter that he would complete the sale of the company by the end of the year. He doesn't like the firm's support of a goal of net-zero greenhouse gas emissions.
He wrote that his policies would destroy Louisiana's economy. The asset manager is one of the largest shareholders of several companies.
During our recent meeting, your representatives mentioned that BlackRock invests in oil and gas companies. Your consistent public messaging has made it clear to the CEOs of fossil fuel companies and every other company that they need to change.
Ball and other Kentucky officials wrote a letter to S&P Global's ratings business objecting to the company's use of ESG factors. The assessment of her state was objected to by it.
According to the company's website, ESG considerations have been used to assess credit ratings since before the term became well-known. Ball objects to the use of ESG in credit indicators at all.
The letter said that it creates a dangerous framework for state borrowing mechanisms. Ball said that she agreed with her friends in Utah who were also concerned about the situation.
S&P Global Ratings referred Insider to the firm's most recent credit report of Kentucky, which affirmed its A credit rating with a positive outlook. The most positive rating in that category can be found on the scale of 1 to 5.
Moore said that banks and asset managers could lose their business if they don't work with the energy industry. Moore's office published a list of firms restricted from contracts with the state over fossil fuel policies.
Moore criticized the firm for its commitments to encourage companies to transition to an economy with net zero greenhouse gas emissions. Significant shareholders of fossil fuel companies are still held by funds managed by Blackrock.
According to the US Energy Information Administration, West Virginia is the fifth largest energy producer in the US and provides 5% of the country's total energy.
Moore's concerns caused the state's Board of Treasury Investments to stop using a fund. West Virginia's investment with Blackrock was just $21.8 million. Moore's office said that the state had used a fund offered by Dreyfus. A person didn't say anything.
The son of a man who worked in the oil and gas industry in Texas was elected to Congress. The House Select Committee on the Climate Crisis is one of the committees he sits on.
The natural gas industry is the latest target of ESG and radical activist investors according to Sen. Crenshaw.
The US Senate Committee on the Judiciary is one of the committees that Sen. Cotton sits on.
The next Congress will take action to end this scam, he said the next day.
It is not clear what plans Sen. Cotton has. No one from Cotton's office returned a request for comment.
According to a New York Times report in May, he warned banks not to be involved in political culture wars and not to be involved in canceling culture.
The SEC's climate disclosure rule was the subject of a letter signed by Loftis. He doesn't like the SEC's disclosure.
"This is another attempt by the Biden administration to take power away from the states by circumventing the democratic process and legislating through SEC regulations," said Loftis.
In May, Rep. Rose wrote a letter to the SEC expressing concern over the commission's climate disclosure rule.
In order to do business with public companies, small farms would have to reveal a lot of climate related information. Small farms don't have full-scale compliance departments
According to a report from the Hill, Rep. Rose said last month that he expects Republicans to try and overturn the SEC's rules if they take control of the House of Representatives.
The Ensuring Sound Guidance (ESG) Act was introduced by Rep. Barr in March of this year.
The bill was introduced by Barr and Allen. The health, employment, labor and pensions subcommittee is chaired by Rep. Allen.
The lawmakers said in an announcement that they wanted to protect investors from their returns being diminished because of politically motivated asset managers who prioritize environmental or social goals instead of returns.
According to an axios report last month, Rep. Barr said the Esg movement is a threat to America that is undermining American competitiveness.
Sen. Sullivan introduced a bill in May to curb the power of big asset managers. In an interview with CNBC in May, Sen. Sullivan said that the firms' commitments are tied to his legislation.
The power of big money managers on proxy votes is something Sen. Sullivan and his cosponsors want to change.
He said in a statement at the time that this would eliminate the influence that these firms have at shareholder meetings.
More large investors like pension funds and endowments have been given proxy voting choice thanks to a program set up by Blackrock.
Gov. Abbott signed a bill last year that prevents Texas from doing business with companies that cut ties with the energy industry.
"This bill sent a strong message to both Washington and Wall Street that if you boycott Texas energy, then Texas will boycott you," Rep. Phil King of Texas said.
Abbott was the first to condemn ESG investing. It was the first state law of its kind. The state's comptroller's office told NPR in April that it was difficult to enforce the law.
"If these companies were open, transparent and honest about their position on the fossil fuel sector, the creation of this list would not present any challenge at all," the spokesman said.
The US Senate Committee on Banking, Housing, and Urban Affairs is chaired by Sen. Crapo.
An anti-ESG pundit who is widely followed on social media was included in a discussion with Idaho's treasurer and senator. The senator doesn't like the use of ESG scores when evaluating credit ratings.
On its surface, the use of these criteria may appear innocuous. Many standards give regulators and corporations too much power in public policy.
The Louisiana treasurer's announcement that he would liquidate the state's investments with BlackRock by the end of the year was reflected in this story.
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