GOP Governors Align to Oppose 'ESG' Investing

Facts

• Nineteen GOP governors, led by Florida Gov. Ron DeSantis, on Thursday announced in a joint press release their opposition to an investing strategy known as ESG ['Environmental, Social and Governance'].¹
• ESG is an acronym for prioritizing environmental, social, and governance when investing — a philosophy that has drawn much criticism from conservatives in the US.²
• Alabama, Alaska, Arkansas, Georgia, Idaho, Iowa, Mississippi, Missouri, Montana, Nebraska, New Hampshire, North Dakota, Oklahoma, South Dakota, Tennessee, Utah, West Virginia, and Wyoming have joined Florida in the announcement.³
• In the press release, the governors decried ESG for “destabilizing the American economy and the global financial system” and insist that major asset managers should do all they can to “maximize shareholder value” rather than focusing on “woke ideology.”³
• Pres. Joe Biden’s Department of Labor has a rule that encourages investors to include ESG in their investment decisions. Congress this month passed a bill to end the rule, but Biden is expected to veto it.⁴
• DeSantis has been vocal about his opposition to ESG — even writing in his recent book that it should be a government priority to take “crippling” action against it.²

Sources: ¹The hill, ²CNBC, ³Daily Wire and ⁴FOX News.

Narratives

• Republican narrative, as provided by Breitbart. ESG is a dangerous menace to America, as it weaponizes investments against citizens through woke ideology. Leaders and residents of all freedom-loving states should do whatever’s necessary to prevent its harmful proliferation.
• Democratic narrative, as provided by Cleantechnica. This is just another misguided shot in the Republicans’ war against so-called woke culture. ESG investing has been around for decades, and it aims to hold to account investors and managers of companies that have negative health or environmental impacts on society.