Staff Reports
The left-wing policies that are being pushed by the Left are being implemented through various means, such as through the use of Americans' money and circumventing the legislative channels. One of these is the establishment of DEI and ESG scores. Due to the backlash they have received, these policies are being widely criticized.
Over a dozen state governments, including Texas, Florida, and Idaho, have enacted legislation that seeks to prohibit ESG investing in public employee pension plans. A similar pattern is developing in red states, where DeSantis has banned DEI initiatives in K-12 schools and universities.
Despite the various steps that have been implemented to address the issue, the implementation of DEI and ESG initiatives still remains a problem. First, they are not being widely embraced by the public in blue states, and second, they are being heavily embraced by the Biden Administration. This is because both of these policies are un-American and violate the fiduciary duties that investment managers are required to follow.
On June 8, Texas Senator Ted Cruz introduced a bill that aims to prevent companies that manage federal employee pension funds from using the funds to force DEI and EIG on their shareholders.
The bill, which is known as the Stop the TSP ESG Act, targets major financial firms such as BlackRock, which can leverage their position as fund managers to force companies to adopt DEI and ESG policies. Doing so would likely have a negative impact on the value of the stock.
Senator Cruz noted that the managing entity of the federal employee pension fund, BlackRock, is using the fund's financial weight to influence the decisions of other investors. He accused the company of brazenly politicizing the accounts of federal employees.
According to Congressman Ken Buck, a Republican from Colorado, BlackRock has been using taxpayer funds to force companies to adopt harmful DEI and ESG practices. As the manager of the Thrift Savings Plan, the firm has been able to abuse public resources to advance an extremist agenda.
Despite the bill's unlikely passage in the Senate or President Biden's signature, it shows that majority of Americans support the principle of investing in companies with the goal of achieving the best possible return. This is also a great direction for those who are pro-consumer capitalism.
Sen. Cruz Puts ESG and DEI in the Crosshairs | RedState https://t.co/frPsNEHHAz
— Ted Cruz (@tedcruz) June 15, 2023
It's time to stop the harmful effects of DEI and environmental, social, and governance (ESG) policies on investment funds. They are nothing more than left-wing Trojan horses that seek to impose censorship and manipulation on the investment industry. We must continue fighting against these policies, which violate the duties that investment firms are legally obligated to uphold. Senator Cruz's example should serve as a model for other politicians.
Source: Red State
