Blake Masters discusses ESG scores in U.S. Senate campaign (2022)
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The states continue to be the main battleground for much of the ESG debate, and according to Bloomberg, concerns about investing, environmental and social mandates, and the perceived politicization of capital have started slipping into various state election campaigns:
"To Blake Masters, the newly minted Republican Senate nominee in Arizona, ESG scores are an existential threat to the US economy along with inflation -- an issue worth campaigning on as ardently as securing the border, preventing voter fraud and challenging Big Tech.
"'They represent a further merger of government and corporation,' Masters said, comparing ESG scores to the tactics of the Chinese Communist Party in a statement to Bloomberg Government on Wednesday. 'These scores have absolutely no place in our country.'
"Masters’ advocacy is part of a growing movement among Republicans to make ESG scores -- the grading of companies’ performance based on their environmental and societal effects, as well as their governance structure -- a cultural issue alongside Democrats’ social justice and environmental advocacy. Those Republicans could seek legislative avenues to limit use of the scores if they take control of the next Congress….
"If elected, Masters could seek to limit the incentives for companies to value factors other than their bottom line.
"The Securities and Exchange Commission, which has oversight of some firms that offer ESG scores and a Democratic chairperson, is unlikely to ban the scores or severely restrict firms that offer them. But a Republican-controlled Congress could pressure the agency to ramp up its scrutiny of the ratings or stop it from taking actions to encourage ESG scores, which socially conscious investors use to compare companies.
"ESG scores have been around for about two decades but only attracted negative political attention more recently. One of ESG’s most prominent critics is Republican megadonor Peter Thiel, who is backing Masters’ campaign. Masters’ refrain on the campaign trail may be replicated by other like-minded candidates.”
See also
- Environmental, social, and corporate governance (ESG)
- Economy and Society: Ballotpedia's ESG newsletter
External links
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