Rep. Roy proposes bill to prohibit federal investment in ESG retirement funds.

Rep. Chip Roy Introduces Bill to Bar Federal Investment in ESG Retirement Funds

“Environmental, Social, and Governance (ESG) investing poses a dangerous threat to the free flow of capital,” Roy said. “This movement is actively threatening our domestic energy supply, empowering activist shareholders, and advancing woke gender and racial ideologies.

“The federal government should not enable ESG,” Roy said.

On May 23, Rep. Chip Roy (R-Texas) introduced a bill aimed at preventing the federal government from investing in retirement funds that use Environmental, Social, and Governance (ESG) criteria. The bill would specifically prohibit the Thrift Savings Plan (TSP), a federal retirement plan, from offering retirement packages that rely on ESG criteria.

ESG is a financial movement where corporations and financiers agree to use their wealth and influence to achieve a left-wing set of policy objectives. These include reducing the use of fossil fuels, restricting gun rights, and other controversial left-wing positions. Some of its largest proponents include BlackRock, Vanguard, and State Street, some of the wealthiest firms in the world.

The bill has 17 cosponsors, including Reps. Dan Bishop (R-N.C.), Troy Nehls (R-Texas), Byron Donalds (R-Fla.) Dan Crenshaw (R-Texas), Scott Perry (R-Pa.), Bob Good (R-Va.), Andy Biggs (R-Ariz.), Lauren Boebert (R-Colo.), and others.

Roy believes that the proliferation of ESG goes against free market norms and poses dangers for Americans. He argues that ESG is an investing scheme that woke corporations are using to appease the Left by destroying reliable American energy and advancing radical gender and racial ideologies.

The TSP currently manages around $817 billion in assets. Because the “vast majority of TSP contributions stem from withholdings from federal or servicemember paychecks and their respective agency matches,” Roy said, “TSP is effectively allowing billions of taxpayer dollars to be used for ESG investing.”

To counter the growth of this practice, Roy’s bill would place restrictions on the criteria the TSP can use for investment. It would prohibit investment first on the basis of environmental criteria, including the emissions produced by a vehicle, climate change issues more broadly, pollution, or a company’s endeavors in fossil fuel production. It would also bar investments on the basis of social criteria, including whether a company manufactures firearms, or the racial, sexual, or gender makeup of its board of executives. Likewise, it would restrict investment on the basis of a company’s political beliefs or donations.

The bill is a response to the growing trend of ESG investing and its potential impact on the American economy and society.

Key Takeaways:

• Rep. Chip Roy (R-Texas) introduced a bill to bar the federal government from investing in retirement funds that use Environmental, Social, and Governance (ESG) criteria.
• The bill would prohibit the Thrift Savings Plan (TSP), a federal retirement plan, from offering retirement packages that rely on ESG criteria.
• ESG is a financial movement where corporations and financiers agree to use their wealth and influence to achieve a left-wing set of policy objectives.
• The bill has 17 cosponsors, including Reps. Dan Bishop (R-N.C.), Troy Nehls (R-Texas), Byron Donalds (R-Fla.) Dan Crenshaw (R-Texas), Scott Perry (R-Pa.), Bob Good (R-Va.), Andy Biggs (R-Ariz.), Lauren Boebert (R-Colo.), and others.
• Roy believes that ESG goes against free market norms and poses dangers for Americans.
• The TSP currently manages around $817 billion in assets.
• Roy’s bill would place restrictions on the criteria the TSP can use for investment.