South Carolina’s Governor, Legislature, and Attorney General continue to advance policies that would force financial institutions to take unnecessary risks, limit investment options, potentially raise costs for taxpayers and impede economic growth across the state.
Here’s what you need to know about the bills before the South Carolina legislature:
Why Responsible Investing Matters for South 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 South Carolina already incorporate responsible investing factors to remain competitive globally and attract investment capital.
- Job Creation: The prioritization of sustainable technologies creates new, high-paying jobs in renewable energy, water conservation, and other future-focused industries critical to South 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 Bills Would Harm South Carolina’s Economy
These bills represent political interference in sound business and investment practices. By targeting responsible investing in South Carolina they would:
- Force investment managers to make bad bets and ignore material financial risks
- Hamper efforts to address money laundering and terrorism financing
- Create regulatory confusion for South Carolina businesses
- Disadvantage South Carolina in competing for future-focused industries and jobs
Responsible investing isn’t about politics—it’s about smart economics. Nobody wants the government forcing them to make a bad bet. By considering all material factors that affect long-term value, responsible investing approaches help create sustainable growth, good-paying jobs, and a more resilient South Carolina economy.
Current Anti-Responsible Investing Bills That Threaten South Carolina’s Economic Future
- House Bill 3296 – The misleadingly named “Farmers Protection Act”:
- What it does: Prevents financial institutions from considering critical climate risks and sustainability factors when making lending decisions to agricultural producers.
- Economic impact: Could force financial institutions to ignore material financial risks that could lose investors money.
- Status: Referred to the House Committee on Agriculture, Natural Resources and Environmental Affairs.
- House Bill 3433 – Financial institutions “discrimination” bill:
- What it does: Forces the hands of financial institutions to provide services to entities that may not meet risk assessment criteria, exposing America’s financial institutions to significant liabilities.
- Economic impact: Could compel financial institutions to ignore known risks and hamper efforts to address money laundering and terrorism financing.
- Status: Referred to Committee on Labor, Commerce and Industry
- House Bill 3600 – Presidential Executive Order restrictions:
- What it does: Gives the General Assembly the power to review Presidential Executive Orders to determine their constitutionality, creating significant barriers for responsible investing initiatives.
- Economic impact: Could prohibit the state from implementing any future Presidential executive order that impacts the financial sector as it relates to environmental, social, or governance standards, threatening to leave South Carolina investors and businesses exposed to undisclosed climate risks.
- Status: Referred to Committee on Judiciary
