David R. Burton
ESG stands for environmental, social, and corporate governance factors, criteria, goals, or objectives. This Special Report describes ESG and its ideological cousin Diversity, Equity, and Inclusion (DEI) and why they are a problem.REF Its primary focus, however, is how to appropriately address the ESG and DEI problems at both the federal and state level. There is no one policy solution that will address the problem because ESG and DEI are now ubiquitous throughout all levels of government (in administration, regulation, and procurement), in corporate America, and in universities.
Addressing ESG and DEI requires a multipronged approach. This Special Report makes 40 specific recommendations for reform or action by the 119th Congress and the new Administration at the federal level and 13 specific recommendations for reform or action at the state level. These recommendations are summarized at the end of the Special Report. Implementing these recommendations would be an important starting point, but there are undoubtedly many other steps that will need to be taken to finally end these destructive policies.
Introduction
In a free society, investors and business owners have the right to make their own decisions about how to invest or operate their business. They can invest their money or operate their business to maximize their return on investment or to minimize their risk, but they may also invest or make business decisions for charitable, social, ideological, or political objectives that result in lower financial returns.REF There are two main limits to this principle. The first relates to fiduciaries, broadly defined, who invest or steward others’ funds. The second imposes non-discrimination requirements on private firms with unusual economic power.
Fiduciaries have a legal obligation to act in the best interest of another person (usually called a principal or beneficiary). Examples of fiduciaries in an investment context would include most investment fund or endowment fund managers or advisers, » Read More
https://www.heritage.org/progressivism/report/esg-dei-and-what-do-about-them