Democratic AGs Letter on ESG

Attorney General Karl A. Racine and a group of 17 state attorneys general wrote to warn the chairs and ranking members of the Senate Banking, Housing, and Urban Affairs Committee and the House Financial Services Committee about Republican efforts to interfere with financial institutions’ ability to make sound investment decisions on behalf of hardworking Americans. The letter is in part a response to the one sent to BlackRock by Republican AGs and the full text is attached below.

The Democratic AGs explain how consideration of environmental, social, and governance (ESG) factors can help grow and protect Americans’ retirement savings, and that the Republican efforts to prevent consideration of these factors are nothing more than an attempt to kowtow to certain corporate interests.

“By kowtowing to the demands of a small group of corporate donors, Republican politicians are engaging in a dangerous misinformation campaign to influence how investment decisions are made,” said AG Racine. “Here’s the truth: considering environmental, social, and governance factors is the best practice of investment professionals throughout the world and the overwhelming majority of trustees in Republican-led states agree. Millions of workers rely on financial experts to help them retire and support their families in their golden years. Thoroughly considering all potential risks before making investment decisions is a fundamental principle of capitalism. These anti-ESG efforts are akin to putting a blindfold on investors.

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