The North Carolina legislature is considering anti-responsible investing bills that are expected to advance to the floor of both chambers.
Unlocking America’s Future has previously worked to combat anti-responsible investing efforts in North Carolina, releasing ads calling out Big Oil’s lobbying efforts in the state.
Here’s what you need to know about how the latest bill would limit investment options, potentially raising costs for taxpayers and hindering economic growth across North Carolina:
Why Responsible Investing Matters for North Carolina’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 North Carolina 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 renewable energy, water conservation, and other future-focused industries critical to North Carolina’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 Bill Would Harm North Carolina’s Economy
This bill represents political interference in sound business. By restricting what risks North Carolina financial institutions can consider, they would:
- Force loan officers to ignore certain material financial risks
- Create regulatory confusion for North Carolina financial institutions and the businesses that rely on them
- Disadvantage North Carolina in competing for future-focused industries and jobs
Responsible investing isn’t about politics—it’s about smart economics. By considering all material factors that affect long-term value, responsible investing approaches help create sustainable growth, good-paying jobs, and a more resilient North Carolina economy.
Anti-Responsible Investing Bill Threatens North Carolina’s Economic Future
North Carolina’s legislature is currently considering House Bill 62/Senate Bill 554, misleadingly titled the “Farmers Protection Act.” As of this writing, House Bill 62 has already been approved by several House Committees.
- This bill is a false solution in search of a problem, and it would limit the information that financial institutions can consider when providing services to agricultural businesses.
- If enacted, the bill would effectively force banks and other financial entities to ignore certain material financial risks in their decision-making processes and force financial institutions to provide services regardless of whether a customer is implementing smart and sustainable agriculture practices.
North Carolina’s legislature is also considering House Bill 454, a bill that would allow the North Carolina state government to reject any federal law, rule, or executive order that the legislature or Attorney General determines to be unconstitutional—particularly including regulations related to environmental, social, and governance financial standards.
