Sen. Cruz introduces bill to fight back against ESG policies
June 8, 2023 | Washington, D.C.
U.S. Senator Ted Cruz (R-TX) introduced legislation that will prevent companies that manage investment funds held in federal employee retirement accounts from using those holdings to vote in corporate shareholder meetings to force leftist Environmental, Social, Governance (ESG) and Diversity, Equity, and Inclusion (DEI) policies onto private sector businesses.
Senator Eric Schmitt (R-MO) is co-sponsoring the bill in the Senate. Representative Ken Buck (R-CO) previously introduced companion legislation in the U.S. House of Representatives.
BlackRock, a far-left, multinational hedge fund, manages several retirement funds held in the federal Thrift Savings Plan (TSP), the retirement system for federal employees. BlackRock is able to leverage its position as the fund manager to vote in shareholder meetings and to force publicly traded companies to adopt ESG and DEI policies, even if doing so adversely affects investor value. As such, BlackRock prioritizes its political agenda over the interests of employees and retirees who are seeking to maximize their return on investment.
Understanding ESG
ESG is a financial weapon used to funnel tax dollars into left-leaning political causes. Companies use it as a marketing tool for attracting money from those who want to support sustainable investing, playing on investors’ ideals. Ultimately, ESG investment dollars are funneled into left-wing social, environmental, or political causes. Conservatives investing in companies pushing ESG are inadvertently funding causes opposed to their core beliefs.
The “Stop TSP ESG Act” would prevent the TSP from allowing woke fund managers to use their voting power to advance a far-left agenda. This bill would not only empower federal retirees and protect their investments, but would also enhance the shareholder power of individual investors who would otherwise get outvoted by large institutional investors like BlackRock.
Will Hild, Executive Director at Consumers’ Research, said, “Woke Wall Street has been using the federal Thrift Savings Plan to force a radical left-wing agenda on the country. That’s a violation of their fiduciary duty and the basic precepts of democracy. Policy should be made in Congress, not BlackRock’s C-Suite.”
According to Penny Nance, CEO and President of Concerned Women for America Legislative Action Committee, “The Stop TSP ESG Act is an important step in stopping the radical ESG agenda by protecting TSP account holders. BlackRock CEO Larry Fink admits to ‘forcing behaviors.’ Shareholders may be unknowingly supporting companies that disparage their values as proxy voting decisions are made by these radicals.”
Read the legislation here.
Statement From Senator Cruz
Senator Cruz said, “I am proud to join Congressman Buck and sponsor this legislation in the Senate to hold investment fund managers accountable and ensure they do not misuse their position as a fiduciary to advance an agenda contrary to the interests of their investors. As the managing entity of TSP, BlackRock is leveraging the financial weight of the federal retirement system to push their woke ESG and DEI ideology through other peoples’ investments. BlackRock’s manipulation and brazen politicization of federal retirement accounts is wrong and should not be tolerated.”
U.S. Senator Ted Cruz
(713) 718-3057 (TX office)
(202) 224-5922 (D.C. office)
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U.S. Senator John Cornyn
(713) 572-3337 (TX office)
(202) 224-2934 (D.C. office)
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