Governor Bill Lee signed a bill Wednesday that requires the Tennessee Treasurer to make investment decisions based on financial factors – not based on environmental, social, or governance (ESG) factors.
The bill, SB0955, was introduced by Tennessee State Senator Jack Johnson (R-Franklin) in January, two months after the U.S. Department of Labor announced the ESG rule which allows retirement plan managers to consider environmental and social issues when making investment decisions instead of focusing on financial factors relative to the rate of return.
States across the country are fighting back against woke ESG investing.
Arkansas, Kansas, Kentucky, & Montana have passed some of the strongest bills.
Other states include: Arkansas, Florida, Indiana, Tennessee, & Utah.
Learn more at https://t.co/teAqA3zslJ. pic.twitter.com/qgGdp7jMFT
— Heritage Action (@Heritage_Action) April 28, 2023
With Governor Lee’s signature, the Department of Labor’s ESG rule is now nullified in the State of Tennessee, requiring the state treasurer to focus solely on financial factors relative to the rate of return of a particular investment.
Lee joins the governors of Utah, Kentucky, West Virginia, Arkansas, Montana, and Florida who have all enacted bills against the ESG rule so far.
On a national level, President Joe Biden used his first veto in March to shoot down legislation that would have invalidated the Department of Labor’s ESG rule altogether, as previously reported by The Tennessee Star.
I just vetoed my first bill.
This bill would risk your retirement savings by making it illegal to consider risk factors MAGA House Republicans don't like.
Your plan manager should be able to protect your hard-earned savings — whether Rep. Marjorie Taylor Greene likes it or not. pic.twitter.com/PxuoJBdEee
— President Biden (@POTUS) March 20, 2023
In a social media video, Biden said at the time, “I just signed this veto because the legislation passed by the Congress would put at risk the retirement savings of individuals across the country.
Biden further defended the Department of Labor’s rule in a separate statement, saying, “There is extensive evidence showing that environmental, social, and governance factors can have a material impact on markets, industries, and businesses. But the Republican-led resolution would force retirement managers to ignore these relevant risk factors, disregarding the principles of free markets and jeopardizing the life savings of working families and retirees.”
Following Biden’s veto, the bill failed to pass in the U.S. House of Representatives over veto.
– – –
Kaitlin Housler is a reporter at The Tennessee Star and The Star News Network.
Photo “Gov Bill Lee” by Gov Bill Lee.
