Texas pensions have been influenced by the wave of political activism within the finance industry and need to develop tools to ensure they stop supporting such activism.
Key points
– Consolidation in the finance industry has enabled progressive political activists to bully corporations into advancing their agenda on issues ranging from climate change to abortion. This activism undermines the financial performance of American businesses, our democratic institutions, and our market economy.
– Texas pensions, while not active promoters of environmental, social, and governance (ESG) investing, are still being brought into ESG trends through the actions of advisors and consultants who are actively promoting ESG.
– The feedback loop between public opinion, government policy, and corporate actions that is driving woke capitalism must be broken to prevent the continued takeover of the means of production—from energy to agriculture to raw materials—by government and crony corporatists.
– State agencies and pensions should not become counter-activists to the ESG movement but must ensure laser focus on fiduciary duty. The Texas Legislature must, in turn, develop policies that ensure Texas businesses and consumers are not harmed by corporate political activism.