US. Conservative Group Wants to Stop State Pensions From Pursuing ESG Initiatives
State pension funds should be barred from considering social and environmental factors in their investment decisions, a conservative association said in a push for new state legislation that would clash with the financial industry’s efforts to focus on greener investments.
American Legislative Exchange Council, an association of state legislators, on Wednesday put forward model legislation that provides states a template for laws to keep pension funds from following so-called environmental, social and governance trends.
“Politically motivated investing, by definition, takes rates of return off the table,” Jonathan Williams, the chief economist at ALEC, said.
ALEC’s move comes amid an ideological row between proponents of incorporating ESG considerations into business, including some in the financial industry, and some politicians who argue that banks should stick to making money.
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