Wyoming’s ESG Disclosure Rules Await Gov. Gordon’s Signature
Wyoming may soon require disclosures for any investments that use environmental, social, and governance strategies.
Wyoming Secretary of State Chuck Gray adopted amendments to its securities rules requiring agents, advisors, and brokers;
“to disclose to their customers or clients whether they are incorporating a social objective …” and ensure clients “are aware of the potential risks of their investments and provide informed consent to these investments and/or investment strategies…”
Will Governor Mark Gordon sign these rules?
We will have to wait to see what he does.
Secretary of State Chuck Gray said in a statement that he’s;
concerned and troubled by the negative impact from ESG investing on key Wyoming industries such as agriculture, and oil and gas.
With an increasing trend of mutual funds and brokerage firms being pressured by woke politicians to offer investment products which employ ESG principles, we must take an active role to protect our state and consumers, Gray said.
The proposed rules are key to ensuring consumers are protected from woke ESG strategies, and I’m proud of our adoption of the rules.
Wyoming has joined 18 states opposing a rule change by the Biden administration pushing ESG.
Republican-led states across the country have taken aim at ESG investing strategies in recent years, arguing it abandons fiduciary responsibility and leaves retirement savings in jeopardy in favor of left-wing politics. (JTN).
There is also a 25-state lawsuits against the new rules.
The Attorney General for Tennessee has announced that he is bringing a first-of-its-kind lawsuit against the major investment company BlackRock due to their business practices regarding ESG.
BlackRock has backed away from the ESG but Tennessee AG Jonathan Skrmetti is alleging that BlackRock is misleading investors in Tennessee.
Environmental, social, and governance (ESG) investing refers to a set of standards for a company’s behavior used by socially conscious investors to screen potential investments.
Environmental criteria consider how a company safeguards the environment, including corporate policies addressing climate change, for example.
Social criteria examine how it manages relationships with employees, suppliers, customers, and the communities where it operates.
Governance deals with a company’s leadership, executive pay, audits, internal controls, and shareholder rights. (Investopedia).
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