The Fight Against ESG Investing: A Turning Tide
By Treasurer David McRae
As Mississippi’s State Treasurer, I have dedicated my efforts to safeguarding the financial interests of our citizens. This week, I want to share some encouraging news regarding our ongoing battle against Environmental, Social, and Governance (ESG) investing—a strategy that has often prioritized political agendas over the fiduciary responsibilities owed to consumers and investors.
Understanding ESG Investing
For years, ESG investing has been a contentious issue. This investment strategy, which encourages companies to adopt left-leaning political stances, has often come at the expense of their core mission: to serve their customers and shareholders. Many corporations, under pressure from Wall Street and Washington, have felt compelled to align with these principles, even when it contradicted their business interests.
President Biden’s administration has been a significant player in this narrative. His first veto was a bill aimed at protecting retirement savings from the encroachment of ESG investing. This action set a concerning precedent, signaling a willingness to prioritize political ideology over the financial security of American families.
A Shift in Corporate Attitudes
Despite the pressures from the federal government, a notable shift is occurring among corporations. Companies such as Harley Davidson, Tractor Supply, and Jack Daniels have begun to abandon ESG principles, signaling a potential turning point in the corporate landscape. This reversal is not merely a corporate trend; it reflects a broader sentiment among consumers who are increasingly disillusioned with businesses that engage in political activism.
Recent polling data reinforces this shift. In 2022, around 50% of Americans believed businesses should take public stances on current events. Fast forward to 2024, and that number has dropped to just 38%, according to a Gallup Poll. This decline suggests that consumers are demanding that businesses focus on their core operations rather than political agendas.
The Economic Reality
The economic landscape is a crucial factor in this discussion. With only about half of Americans having sufficient savings for retirement, the stakes are high. The current economic policies under the Biden-Harris administration have made retirement more expensive, leaving many individuals with little room to gamble their financial futures on the whims of Wall Street’s political agendas. As a result, consumers are making their voices heard—through their purchasing decisions and investment choices.
A Capitalist Approach
As a staunch believer in capitalism and the free market, I hold firm to the idea that when consumers are empowered with information, they will make choices that reflect their values. This principle has guided my actions here in Mississippi. Rather than advocating for state boycott lists, I have focused on arming consumers with the knowledge they need to make informed decisions. My goal has always been to ensure that state investments align with the interests of our citizens, not the political agendas of financial elites.
I have actively engaged with federal leaders, influential organizations like the Business Roundtable, and major financial institutions to promote Mississippi’s strategies. The positive responses we’ve received indicate that our efforts are resonating beyond our state borders.
A Cautious Optimism
While I remain aware that ESG investing is not yet a thing of the past, I am optimistic that our collective efforts have ignited the beginning of the end for this woke investment strategy. I commend every Mississippian who has raised their voice against ESG and every company that has chosen to heed the will of the people by stepping away from these principles.
As we navigate the economic challenges ahead, it is crucial that we do not add the complexities of ESG investing to the mix. The focus should remain on fostering a business environment that prioritizes the financial well-being of our citizens.
Conclusion
In my role as the 55th Treasurer of Mississippi, I am committed to managing the state’s cash flow responsibly, overseeing College Savings Mississippi, and returning unclaimed money to our residents—over $85 million to date. I believe that by continuing to advocate for transparency and accountability in investing, we can create a financial landscape that truly serves the people of Mississippi.
For more information about our initiatives and efforts, please visit Treasury.MS.gov. Together, we can ensure that our economic future remains bright and focused on the needs of our citizens.