SC Bill Fighting Harmful ESG Investing Heads to Gov. McMaster’s Desk

Press Releases · Jan 17, 2024

WASHINGTON—Heritage Action, a conservative grassroots organization with two million grassroots activists, including thousands of South Carolinians, released the following statement commending the South Carolina General Assembly’s bipartisan passage of H. 3690, a first step toward combating the harmful Environmental, Social, and Governance (ESG) movement by requiring the South Carolina Retirement System Investment Commission to make investments solely in the financial interests of participants and their beneficiaries.

Heritage Action’s South Carolina State Director James Quarles applauded the lawmakers and encouraged Gov. Henry McMaster to sign the bill, saying:

“ESG almost always ends up hurting those forced to pay for its progressive ideology. When hardworking South Carolinians invest in their retirement plans, they rightfully expect their asset managers to put their financial interests first—not waste their money investing in Left-wing political priorities. Asset managers who let ESG policies dictate their investment decisions violate the fiduciary responsibility they have to South Carolinians whose savings they’ve pledged to steward.

“Heritage Action applauds the South Carolina General Assembly for its overwhelming and bipartisan passage of H. 3690. While there is more work to be done to combat ESG in South Carolina, the Retirement System Investment Commission’s asset managers will now be required to make decisions based solely on the financial interests of participants and their beneficiaries. We look forward to Governor McMaster signing this important bill into law.”

South Carolina’s H. 3690 is one piece of the growing momentum across the country to safeguard Americans’ personal investments and business interests. State lawmakers, often with the support of Heritage Action, are leading the way. Texas provided a model in 2021 by prohibiting the state from doing business with entities that boycott fossil fuels. Last year, 28 states introduced legislation to fight the harmful impact of ESG, more than double the number of states to consider similar bills the year before.

Heritage Action will continue to support lawmakers across the country who are committed to putting Americans’ financial security over ESG’s misplaced priorities.