ESG Investing: State Fiscal Debates to Watch in 2024 – The Pew Charitable Trusts

No Comments

Premium Domain Names for Sale at CrocoDom.com
Navigate to:
This article is the third in a series about public finance issues that are likely to capture the attention of lawmakers this year.
Environmental, social, and governance (ESG) investment strategies continue to gain popularity among investors and financial institutions, but with their rising prominence has come a growing divide in state attitudes about the ESG approach. ESG approaches consider the impacts that various investments have on people and the planet. They also can illuminate material risks and opportunities—such as a company’s record on employee relations or compliance with environmental regulations—that should be considered as part of any financial decision-making.
In recent years, four states—Colorado, Illinois, Maine, and Maryland—enacted legislation encouraging public pension funds to include ESG factors in investment decisions, while in 2023 alone, 14 states adopted laws discouraging ESG considerations or banning ties to financial companies that do so. Most of this state legislation has focused on public pension investments, although some bills have encompassed other aspects of government finance, including banking, contracts, and borrowing.
Moreover, several states that have proposed but not passed ESG-related legislation—such as Arizona and Missouri—have introduced bills again in 2024. And lawmakers in California are still considering legislation that would require the state’s pension systems to divest from fossil fuels by July 2031.
As more states pass legislation on social and environmental investing strategies, the national debate over the potential costs of both pro- and anti-ESG mandates is likely to heat up. At issue is whether ESG mandates infringe upon a state fiduciary’s duty to maximize returns, either through lost investment opportunities or by imposing a higher cost of doing business.
Further, some evidence suggests that policies governing ESG considerations may have unintended consequences for other areas of state and local government finance. For example, boycotts that cut business ties with banks that embrace ESG investing practices may limit governments’ underwriting options, leading to less competition and higher borrowing costs for states. In Texas, a top source of new municipal bond sales, five of the municipal banking industry’s largest underwriters left the state after legislators in 2021 prohibited state and local entities from contracting with banks that have divested from oil and gas companies. Research published the following year found that their exit resulted in more than $500 million in higher borrowing costs for local governments in the state over just eight months.
Some municipal bond market stakeholders are concerned that boycotts like the one in Texas could strain the relationship not only between banks and the individual states, but also between banks and government issuers more broadly. But others argue that states are right to reject investment strategies and financial service providers that potentially leave money on the table by avoiding fossil fuels. And especially in states where oil drives a large part of the economy, officials are concerned that ESG investing is harmful to state interests.
“I just want to have real conversations,” said Louisiana State Treasurer John Schroder, who in 2022 cut the state’s ties with certain financial firms over ESG investing practices. “I’m responsible for investing money and getting a return. [That company was] basically trying to force policy down our throats.”
Two lawsuits are testing states’ various views on ESG investments. One case that is pending before the New York Supreme Court contends that pension asset managers breached their fiduciary duties when they decided to stop investing in fossil fuels. Experts say that the suit, brought by four New York City employees and a national nonprofit organization, could provide a basis for further court challenges to ESG investing.
But in Oklahoma, a former state employee is making the opposite point. With the backing of labor and other pro-pension organizations, former Oklahoma Public Employees Association President Don Keenan is suing the state over its boycott of firms that divested in fossil fuels, arguing that the mandate imposes unnecessary costs on the pension system. The Oklahoma Public Employees Retirement System has used a legal exemption to so far avoid divesting from the blacklisted companies, arguing that it would cost the state’s pensioners $10 million.
Liz Farmer works on The Pew Charitable Trusts’ state fiscal policy project.
Receive our best conservation research bi-weekly—stunning photos, wins, and action alerts.
Exclusive state-policy research, infographics, and stats every two weeks.
Sign up for our five-email course explaining the overdose crisis in America, the state of treatment access, and ways to improve care
Sign up for our five-email course explaining the overdose crisis in America, the state of treatment access, and ways to improve care
Receive alerts when Fiscal 50 is updated with new data or analyses.
The debate over whether state public pension administrators should consider the financial implications of environmental, social, and governance (ESG) factors in their investment decisions has been contentious in recent years. One reason is because ESG can carry different implications and definitions depending on the context and intended outcome.
State Fiscal Debates to Watch in 2024
Sign up for our four-week email course on Broadband Basics
How does broadband internet reach our homes, phones, and tablets? What kind of infrastructure connects us all together? What are the major barriers to broadband access for American communities?
Sign up for our four-week email series The Race Against Resistance.
Antibiotic-resistant bacteria, also known as “superbugs,” are a major threat to modern medicine. But how does resistance work, and what can we do to slow the spread? Read personal stories, expert accounts, and more for the answers to those questions in our four-week email series: Slowing Superbugs.
Founded in 1948, The Pew Charitable Trusts uses data to make a difference. Pew addresses the challenges of a changing world by illuminating issues, creating common ground, and advancing ambitious projects that lead to tangible progress.
Don’t miss our latest facts, findings, and survey results in The Rundown

source
Premium Domain Names:

A premium domain name is a highly sought-after domain that is typically short, memorable, and contains popular keywords or phrases. These domain names are considered valuable due to their potential to attract more organic traffic and enhance branding efforts. Premium domain names are concise and usually consist of one to two words or two to four individual characters.

Top-Level Domain Names for Sale on Crocodom.com:

If you are looking for top-level domain names for sale, you can visit Crocodom.com. Crocodom.com is a platform that offers a selection of domain names at various price ranges. It is important to note that the availability of specific domain names may vary, and it’s recommended to check the website for the most up-to-date information.

Contact at crocodomcom@gmail.com:

If you have any inquiries or need assistance regarding the domain names available on Crocodom.com, you can reach out to them via email at crocodomcom@gmail.com. Feel free to contact them for any questions related to the domain names or the purchasing process.

Availability on Sedo.com, Dan.com, and Afternic.com:

Apart from Crocodom.com, you can also explore other platforms like Sedo.com, Dan.com, and Afternic.com for available domain names. These platforms are popular marketplaces for buying and selling domain names. Each platform may have its own inventory of domain names, so it’s worth checking multiple sources to find the perfect domain name for your needs.

#PremiumDomains #DomainInvesting #DigitalAssets #DomainMarketplace #DomainFlipping #BrandableDomains #DomainBrokers #DomainAcquisition #DomainPortfolio #DomainIndustry #DomainAuctions #DomainInvestors #DomainSales #DomainExperts #DomainValue #DomainBuyers #DomainNamesForSale #DomainBrand #DomainInvestment #DomainTrading

About us and this blog

We are a digital marketing company with a focus on helping our customers achieve great results across several key areas.

Request a free quote

We offer professional SEO services that help websites increase their organic search score drastically in order to compete for the highest rankings even when it comes to highly competitive keywords.

Subscribe to our newsletter!

There is no form with title: "SEOWP: MailChimp Subscribe Form – Vertical". Select a new form title if you rename it.

More from our blog

See all posts

Leave a Comment