GOP Anti-ESG Laws Could Cost Taxpayers $700 Million

Using ESG criteria to make investment decisions is being attacked politically by members of the GOP
Using ESG criteria to make investment decisions is being attacked politically by members of the GOP. Igor Borisenko / iStock / Getty Images Plus
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Taxpayers in six states could lose more than $700 million because of Republican officials’ boycotts of firms that consider environmental, social, and (corporate) governance factors in their investment decisions, a new report from Econsult Solutions finds.

The legislation enacted in Kentucky, Florida, Louisiana, Oklahoma, West Virginia, and Missouri spawned out of model legislation pushed by ALEC and a network of fossil fuel-funded dark money groups.

“This report highlights the potential multi-million-dollar economic burden on both residential taxpayers and businesses in states that are taking or considering actions to limit climate and other ESG [environmental, social and governance] considerations within their municipal bond work,” Steven Rothstein, a managing director at Ceres, said in a statement.

As reported by Reuters:

The study based its analysis on a recent Wharton School of Business paper that found Texas taxpayers could have faced up to $532 million in additional interest payments because of restrictions introduced in that state.

“Legislators will face the backlash of their constituents for flushing hundreds of millions of dollars down the toilet for their own political games,” said Andrew Behar, CEO at shareholder advocacy group As You Sow, one of the backers of the study.

For a deeper dive:

E&E, Politico, Reuters, News From the States, ImpactAlpha

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