Environmental, social and governance (ESG) investing has been a key component of Mercy Investment Services’ program since its inception as an important expression of alignment between the investments and the mission of the Sisters of Mercy. As ESG investing has grown among socially conscious investors, an anti-ESG movement has erupted among some politicians and state treasurers.
New legislation prohibits state contracts and investments with any investment firms that use environmental or social indicators to inform investment decisions. In some instances, government entities may not enter any contract for goods or services without written verification that the vendor will not boycott fossil fuels. Legislation of this nature has been introduced in 37 states, and targets investors who have made climate commitments.
In early June, Mercy Investment Services joined 77 fellow Interfaith Center for Corporate Responsibility members in a letter asking members of Congress to publicly speak out against these anti-ESG campaigns and efforts to derail environmental and social progress resulting from shareholders’ efforts. The letter encourages members of Congress to advocate for prudent, non-partisan investment practices and to consider the financial damage to state and municipal pension funds due to the anti-ESG legislation.
Mercy Investment Services will continue to advocate for the importance of ESG investing.