Staff Reports
A report from the American Accountability Foundation (AAF) revealed that pension funds for Arizonans were being used to support racial and climate-related resolutions at publicly traded companies. The Arizona State Retirement System (ASRS) backed environmental, social, and governance (ESG) shareholder resolutions on topics such as race, gender, climate, and politics. According to documents obtained by AAF, ASRS worked with proxy advisory firms that support ESG initiatives. This use of pension funds for ESG policies has raised concerns among some, including Arizona state senator Jake Hoffman, who emphasized the importance of prioritizing retiree benefits over what he referred to as “woke policies.”
The report identified 183 instances where ASRS voted in favor of what the watchdog group called “woke” shareholder proposals. These included initiatives like racial equity audits, gender pay gap reports, defunding conservative candidates, supporting radical climate policies, and pro-abortion measures. ASRS manages investments totaling nearly $12 billion in U.S. stocks and paid fees to proxy advisory firms that supported ESG initiatives. Critics argue that ESG investments may not always align with the best interests of shareholders.
EXCLUSIVE: Swing State's Pension Funds Used To Advance 'Racial Equity,' Climate Initiatives, Report Finds https://t.co/D1uMjiJWhj
— Daily Caller (@DailyCaller) May 26, 2024
Critics, including AAF President Thomas Jones, have expressed concerns about what they perceive as a collaboration between state officials and corporations to push a leftist agenda using pension funds. They argue that such decisions should involve input from the people of Arizona or their elected representatives. The report has sparked a debate about the role of pension funds in advocating for social and environmental causes.
The disclosure of ASRS’s support for resolutions at companies like Walmart, Boeing, Chevron, and AT&T has drawn attention to the impact of pension funds on corporate decision-making. These resolutions called for actions ranging from racial equity audits to greenhouse gas emission reduction targets. The discussion around ESG investing continues to evolve, with some questioning the financial implications of such initiatives.
In the broader context of investment trends, there has been a shift in capital flows away from green energy companies towards traditional oil and gas firms in 2024. Despite differing perspectives on ESG investing, the use of pension funds to advance social and environmental causes remains a contentious issue. The debate highlights the complex relationship between financial considerations and socially responsible investing.
