North Carolina becomes latest state to challenge ESG (2023)
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The North Carolina State Senate on June 13 passed a bill banning the use of ESG in state investments. The bill previously passed the state House and now heads to the desk of Gov. Roy Cooper, a Democrat and ESG supporter. Cooper is expected to veto the bill, but the legislature is expected to have the votes to overturn a veto:
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The North Carolina Senate voted Tuesday to ban the consideration of environmental, social and governance (ESG) scores in state hiring and investment decisions. The bill passed the Senate along party lines with a 29-18 vote and was sent to the desk of Democratic Gov. Roy Cooper, a supporter of ESG. The North Carolina House approved the legislation in a 76-41 vote last week. The vote totals in both chambers suggest a veto from Cooper could be overridden. State treasurer Dale Folwell, who manages one of the largest state pension funds in the U.S., said he supports the legislation because "people want their government to work." "This bill is the perfect example of how elected leaders can get together and make good policy so that future treasurers will not be able to use beneficiaries’ money to promote a political agenda," said Folwell, a Republican gubernatorial candidate who has criticized ESG policies as "wacktivism." The bill does not ban private companies from considering ESG factors, like how a corporation interacts with the environment, a company’s relationship with its stakeholders and community, and the ethics of a company’s leadership. … In April, North Carolina Republicans tried to pass a more sweeping bill which would have banned all banks in North Carolina from accounting for ESG factors, but the legislation faced pushback from the N.C. Chamber of Commerce.[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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