Some state governments have begun to fight back against progressive ESG initiatives and the attempt to redefine the purpose of businesses.
States can enact legislation to ensure that state retirement funds are invested solely to achieve a return for state employees who are pension plan beneficiaries rather than to achieve political or social objectives by hiring only investment advisors that commit to not shortchange retirees to further a political or social objective. The following model legislation would accomplish this objective.
AN ACT relating to the fiduciary duty and proxy voting activities of public retirement systems.
Section 1. Definitions
Section 2. Fiduciary Duty
Section 3. Enforcement
Section 4. Applicability and Effective Date