It’s Time to Stand Up Against the ESG Movement
South Carolina takes pride in its reputation as a fiscally conservative state, and as such, the well-established economic policies and sound principles of financial governance we adhere to have allowed us to weather many economic storms. Even through a global pandemic, the Palmetto State’s economy has outperformed expectations and emerged stronger than ever.
However, there is a new economic storm brewing in our nation. One that threatens to shift an economic paradigm based on fiduciary responsibility and sound financial judgment to one that supports implementing progressive social and political agendas in the name of “stakeholder capitalism.” The Environmental, Social and Governance (ESG) movement has emerged in recent years as questions about global sustainability have increased, particularly since much of the world was shut down by the Covid-19 pandemic. But the components of ESG have been in the works for decades, created by unelected global elites desiring to push their progressive social agenda onto the mainstream.
Simply put, ESG is the Left’s political ideology expressed in financial terms and turned into investment and government policies. There is little regard for the financial impacts they may have on our markets or economy. It’s being imposed upon corporations, states, investment firms, and even pension plans, with threats of public scandal or financial penalties for non-compliance.
Their desires are two-fold:
to change behavior, and
to control outcomes that align with their preferred political views.
There are key aspects of the underlying political doctrine of ESG that have been implemented in every major sector of our economy – particularly the energy sector – which have already inflicted serious financial harm to our nation’s economy.
While ESG is marketed such that it seems virtuous, ESG removes the objectivity created by the exercise of fiduciary responsibility and replaces it with the subjectivity of political action. This movement is supported by hordes of people and institutions who actually profit from its implementation, including many who are in opposition to our traditional customs of finance and law. Not only can ESG potentially mislead investors, but it can also weaponize non-investor groups with specific political agendas that inflict financial damages on states and their citizens.
Moreover, if the use of ESG makes its way into the realm of personal finance, it could establish a similar path to coercion, harassment and financial disenfranchisement of individuals. The goal of ESG is to merge critical functions of government and corporatism to create a hybrid that is unaccountable to shareholders or voters and more closely resembles China than the United States.
For more than two years, I have participated in the growing dialogue between the states, financial institutions and proponents of ESG. It has been respectful, but frank. And it has been more robust and public in the past few months. Many elected officials understand that we have a sworn allegiance to our citizens, not to a special interest agenda promoted by non-elected elites.
I take seriously my role and responsibility for managing, investing and retaining custody of $60 billion in public funds for the citizens of this state. I have put financial institutions and their representatives on notice that we are opposed to ESG and its growing influence on credit ratings, investment decisions, monitoring of private citizens’ bank accounts and other politicized actions in the name of so-called sustainable enlightenment. We have taken a number of actions to combat ESG’s influence on our investments and will continue to do so.
I am committed to representing the citizens of the Palmetto State, not those of out-of-state or international activists. We cannot allow these wealthy and powerful elites to supplant the voices of our citizens and the decisions of their elected representatives.
I ask you to join me in standing up for our rights by learning what you can about ESG, avoid investing in funds that are boycotting particular sectors or promoting social causes over financial gain, and speak up to inform your peers. Your grassroots support can make a big difference for our future generations.
Curtis Loftis is the South Carolina State Treasurer and has held elected office since 2010.
A note from the Beaufort County Republican Party
There are a number of bills this session in the South Carolina Legislature regarding this issue. We suggest getting informed and contacting your legislative representatives. In addition to the great awareness Treasurer Loftis has brought, Attorney General Alan Wilson has joined those efforts in putting companies on notice and challenging federal regulations that would be harmful to our State.
