In Louisiana, Republican Governor Jeff Landry, the Republican-controlled legislature, and Republican Attorney General Liz Murrill continue to advance policies that would limit the freedom to invest, hindering job creation and economic development.
The Louisiana legislature is considering legislation that would expose peoples’ retirement savings to unnecessary risk and limit risk management options for large financial institutions. Here’s what you need to know about the push to politicize Louisianans’ retirement savings and how it could harm the state’s economy:
Why Responsible Investing Matters for Louisiana’s Economy:
- Lower Costs for Families: Responsible investments often prioritize long-term sustainability that reduces costs over time, from energy-efficient infrastructure to climate-resilient development.
- Increased Competitiveness: Many companies headquartered or operating in Louisiana already incorporate responsible investing factors to remain competitive globally and attract investment capital.
- Job Creation: The transition to sustainable technologies creates new, high-paying jobs in clean energy, water conservation, and other future-focused industries critical to Louisiana’s growth.
- Risk Management: Considering environmental and social factors helps investors avoid costly risks, protecting retirement savings for public employees and state investments.
How Anti-Responsible Investing Bills Would Harm Louisiana’s Economy
These bills represent political interference in sound business and investment practices. By targeting responsible investing in Louisiana they would:
- Force investment managers to ignore known risks and reduce their options for growing Louisianans’ retirement money
- Limit access to capital for companies addressing climate challenges
- Reduce banking competition and financial service options in the state
- Create legal uncertainty for financial institutions operating in the state
- Could increase costs for Louisiana businesses
- Interfere with private financial institutions’ ability to make market-based decisions
Responsible investing isn’t about politics—it’s about smart economics. By considering all factors that affect long-term value, responsible investing approaches help create sustainable growth, good-paying jobs, and a more resilient Louisiana economy.
Current Anti-Responsible Investing Bills Threaten Louisiana’s Economic Future
- Senate Bill 7 – Limiting public retirement systems freedom to invest:
- What it does: Restricts the information that fiduciaries of public retirement funds can consider when making investment decisions. Specifically the bill prohibits consideration of “factors related to furthering environmental, social, political, or ideological goals, objectives, or outcomes.”
- Economic impact: Could reduce retirement security for Louisiana public employees by artificially limiting investment strategies.
- Status: Pending further action in the Senate Retirement Committee
- House Bill 418 – Limiting financial institutions from considering responsible investing factors
- What it does: Forces large financial institutions to make risky bets by limiting the non-financial criteria they can consider when providing financial services. Economic Impacts: Could increase borrowing costs for Louisiana businesses as financial institutions respond to this bill’s regulatory constraints.
- Status: Introduced in the House and currently under review by the House Commerce Committee, where legislators will debate its provisions before any potential vote.
