In Missouri, Republican legislators continue to advance policies that would limit the freedom to invest, hindering job creation and economic development.
The Missouri legislature is considering six pieces of anti-responsible investing legislation that would expose people’s retirement savings to unnecessary risk and handcuff financial institutions’ ability to protect Missourians’ investments from known risks. Here’s what you need to know about the push to politicize Missourians’ retirement savings and how it could harm the state’s economy:
Why Responsible Investing Matters for Missouri’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 Missouri 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 Missouri’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 Missouri’s Economy:
These bills represent political interference in sound business and investment practices. By targeting responsible investing in Missouri, they would:
- Force pension and investment managers to ignore known risks and reduce their options for growing Missourians’ 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 virtually all businesses operating in the state
- Could increase costs for Missouri businesses
- Interfere with private financial institutions’ ability to make market-based decisions
- Potentially reduce retirement earnings for Missouri’s teachers, firefighters, police officers, and other public servants
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 Missouri economy.
Current Anti-Responsible Investing Bills Threaten Missouri’s Economic Future
- House Bill 657 and House Bill 147 – Modifying provisions related to proxy voting and fiduciary investment duties:
- What it does: Restricts how public employee pension funds can vote at company meetings, blocking them from supporting resolutions on climate change or corporate responsibility, based on the false claim these aren’t financial issues. Creates new standards to limit investment managers’ consideration of environmental, social or corruption risks.
- Economic impact: Could prevent public employee retirement systems from considering long-term risks, potentially harming long-term returns.
- Status: Prefiled on December 23, 2024, reported “Do Pass” by the Committee on Rules – Legislative on February 25, 2025.
- Senate Bill 338 – Restricting banking contracts based on fossil fuel investing policies:
- What it does: Requires the state treasurer to create and maintain a “restricted financial institution list” targeting banks and financial institutions that limit financing to fossil fuel-based energy companies. The state treasurer would be authorized to exclude these institutions from competing for state contracts and refuse to enter into banking agreements with them.
- Economic impact: Could limit the pool of financial institutions available to provide banking services to the state, potentially leading to higher costs and fewer options for state banking needs.
- Status: Introduced on January 8, 2025, hearing conducted in the Senate Insurance and Banking Committee on April 8, 2025.
- Senate Bill 389 – Limiting public retirement systems’ freedom to invest:
- What it does: Modifies provisions relating to fiduciary duties for investments of public employee retirement systems, explicitly prohibiting consideration of environmental, social, or governance characteristics. The bill prevents retirement fund managers from considering responsible investing factors.
- Economic impact: Could reduce retirement security for Missouri public employees by artificially limiting investment options and increasing financial risk.
- Status: Referred to Senate Local Government, Elections and Pensions Committee on February 17, 2025.
- Senate Bill 588 – Restricting state contracts with certain companies:
- What it does: Penalizes companies for making business decisions based on responsible investing factors, prohibiting Missouri government entities from contracting with them.
- Economic impact: Penalizes companies for pursuing responsible investment practices, leading to reduced competition for government contracts, and potentially higher costs for Missouri taxpayers.
- Status: Referred to Senate Government Efficiency Committee on March 13, 2025.
- Senate Bill 272 – Creating new restrictions on private business decision-making:
- What it does: Prohibits public entities from contracting with companies that incorporate responsible investing criteria and makes it an unlawful business practice for private businesses to consider diversity, equity, and inclusion (DEI) factors in their contracting decisions.
- Economic impact: Would create significant legal uncertainty for businesses operating in Missouri and could subject them to litigation for standard business practices related to corporate social responsibility.
- Status: Introduced on January 8, 2025, and voted “Do Pass” by Senate Economic and Workforce Development Committee on April 2, 2025.
- Senate Bill 227 – Prohibiting public entities from entering into certain contracts:
- What it does: Similar to SB 588, prohibits public entities from contracting with companies engaged in “economic boycotts” of companies involved in fossil fuels, firearms, or that don’t meet certain environmental standards or board diversity criteria.
- Economic impact: Would limit contracting options for public entities and potentially increase costs for Missouri taxpayers.
- Status: Introduced on January 8, 2025, hearing conducted in Senate Economic and Workforce Development Committee on March 5, 2025.
