Indiana House passes bill opposing ESG in state investments (2023)
| Environmental, social, and corporate governance |
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The Indiana House passed a bill on April 24 restricting the use of ESG funds in state investments, following the lead of the state Senate. The bill now goes to Gov. Eric Holcomb (R) for consideration.
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Indiana Republicans pushed through a proposal Monday taking a stand against socially and environmentally conscious investing although disagreements within their legislative majorities narrowed it from what conservatives first sought. House members voted 66-29 for final passage of the bill aimed at preventing leaders of the state’s pension funds for teachers and other government workers from investing any of their some $45 billion with firms that consider environmental, social and governance principles in their investment decisions…. Such a ban is needed in Indiana to ensure that "financial returns trump all," said Republican Rep. Ethan Manning of Logansport, the bill’s sponsor. "Our concern is when these large asset managers on Wall Street are using their outsized market power to force decisions on companies when it’s not best for them," Manning said…. The Indiana Chamber of Commerce, the state’s largest business group, and some other business organizations objected to earlier versions of the bill, calling proposed investment limitations "anti-free market." An analysis of the first version of Manning’s proposal projected that the limitations would cost the state pension system $6.7 billion over 10 years. Business groups dropped much of their opposition after the initial proposal was rewritten and the GOP-dominated Senate later removed provisions such as one that would have had the state treasurer's office compile and publish a list of companies it found had made ESG investment commitments…. Democratic Rep. Carey Hamilton of Indianapolis argued the anti-ESG bill was "carving out protections for certain sectors for political reasons." "We’re creating bigger government to oversee a system that works today for our retirees," Hamilton said.[1] |
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See also
- Environmental, social, and corporate governance (ESG)
- Economy and Society: Ballotpedia's ESG newsletter
External links
Footnotes
- ↑ Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source.
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