Bill aims to prioritize profits over ESG in pensions

A proposed bill by Congressman Andy Barr aims to limit "woke" ESG investing by state pension funds. The legislation requires funds to focus on maximizing profits, instead of environmental, social, and governance targets. It will also impose new disclosure rules on the differences in fees and returns. Barr stated that the Ensuring Sound Guidance Act seeks to prioritize financial advice based on economic principles over political agendas. He argues that this approach builds investor trust and promotes long-term growth. The proposed law is expected to be published for reviews later today. This initiative comes as some states, including Kentucky, have enacted strong anti-ESG laws. Reports suggest that state pension funds—overseeing $6 trillion in assets—have become involved in politics with regard to their investments. Critics warn this can lead to less money for retirees as funds engage in activist proposals that might not serve investors' best interests.