Republican legislators from Texas and Iowa have expressed their anger and concern over asset management firms and their commitment to social and environmental causes, dubbing it wokery and a PC agenda. In an effort to prevent further boycotting of the gun, fossil fuel and other industries, Senate Bill 13 in Texas and Senate Study Bill 1094 in Iowa have been proposed. These bills would limit opportunities for asset managers to incorporate “environmental, social and governance factors” into their investment decisions, instead forcing them to make investment decisions solely aimed at maximizing returns and profitability.

The Governor’s Office of the Lone Star state has expressed that the ESG practices are legally and financially concerning, citing that “Public officials are responsible for investing billions of dollars in retirement funds, pension funds, and other investment vehicles. Those hard-earned dollars must not be sacrificed to advance progressive social causes, like green energy or gun control at all costs.”