FOR IMMEDIATE RELEASE: January 4, 2024
Washington, D.C. – S&P Global released a new analysis showing how anti-responsible investing campaigns end up hurting small towns and everyday Americans. Small towns in Texas are cutting ties with their underwriters to avoid infringing on the confusing guidance issued by Texas Attorney General Ken Paxton, and Stillwater, Oklahoma abruptly halted a plan to install energy-efficient lighting after Bank of America was found to be in violation of the state’s anti-ESG law.
“This new analysis demonstrates how the politicians pushing anti-responsible investing policies are doing so for one purpose: to protect the wealthy special interests bankrolling their campaigns,” said Kyle Herrig, spokesperson for Unlocking America’s Future. “Politicians like Ken Paxton don’t actually care that they’re hurting middle class and everyday Americans; they just care about protecting wealthy polluters’ bottom lines.”
The S&P analysis comes on the heels of several others that make clear that the extreme attacks on responsible investing endanger the financial well-being of everyday Americans, especially in the form of higher taxes and lower returns on retirement savings.
- The Kansas State Division of the Budget projected reduced returns of $3.6 billion over 10 years for the Kansas Public Retirement System if anti-ESG investment restrictions were adopted.
- The Arkansas Public Employees Retirement System estimated they could lose $30-40 million each year due to an anti-ESG bill requiring public divestiture from institutions using ESG-related metrics. The Arkansas Teacher Retirement System estimated an additional $7 million in losses each year as a result of the legislation.
- According to the state’s Chief Investment Officer, the Oklahoma Public Employees Retirement System could face $9.7 million in taxes, fees and commission costs if it is forced to divest from BlackRock, Wells Fargo, JP Morgan Chase, State Street Corp, and Bank of America because of anti-ESG legislation.
- An economic analysis found that taxpayers in six states — Kentucky, Florida, Louisiana, Oklahoma, West Virginia and Missouri — could be on the hook for up to $700 million in excess interest payments if restrictions on sustainable investing are implemented.
- A 2022 study found Texas’ anti-responsible investing laws would result in up to $500 million in undue interest over the first eight months of enforcement, costs which would ultimately be borne by taxpayers in the state.
