FOR IMMEDIATE RELEASE
March 27, 2023
Contact: JoDonn Chaney, (573) 526-0949

 

Ashcroft Triumphs when Biden Fails

-ESG HB 863 Moves Forward-

Jefferson City, Mo. — As President Biden recently vetoed bipartisan congressional legislation surrounding ESG, Secretary of State Jay Ashcroft continues to lead efforts to protect Missourians against deceptive investing practices.  

After months of work, Ashcroft is pleased that legislation initiated by his office regarding impact investing - often called ESG – has now passed the Missouri House of Representatives. Missouri continues to lead the nation in implementing measures designed to protect investors regarding the environmental, social, and governance investing agenda.

“I am encouraged to see the House pass this legislation aimed at protecting Missouri investors,” Ashcroft said. “Missourians work hard for their money. And when they invest, it makes sense to have standards in place requiring financial advisors who propagate strategies that are not profit focused to fully disclose this to their clients. We want to make sure investors are aware of agendas which they might not agree with and could affect their bottom line.” 

Due to the tenacity of Ashcroft’s efforts, other secretaries of state, including from Wyoming and Georgia, have taken notice and aim to enact similar legislation. Their actions validate Ashcroft’s leadership and forward thinking as he fights to protect all Missourians.          

Ashcroft challenged the Biden administration in June 2022 when he sent a letter to the Securities and Exchange Commission (SEC) stating opposition to a proposed federal rule regarding ESG.  The proposal by the SEC would require publicly traded companies to disclose climate-related and greenhouse gas emissions data. Ashcroft wrote that he had concerns regarding the scope and reach of the rule.  “This proposal goes beyond the disclosure of material factors. It implies value judgments about social issues under the guise of a disclosure rubric and requires the consideration of those factors.”     

In January, Ashcroft submitted language to the Administrative Rules Division within his office that would implement disclosure standards for ESG investments and was hopeful the legislature would take this next step of putting ESG safeguards into law.  He applauds bill sponsor State Representative Michael O’Donnell for his efforts. 

“I’m so proud of this package of legislation because we’ve approached this issue from the standpoint of protecting consumers - that has been our focus all along and that is what we’ve delivered,” O’Donnell said. 

Secretary Ashcroft will continue to work closely with O’Donnell and the legislature to pass this important bill aimed at safeguarding Missouri investors.

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Visit www.sos.mo.gov to learn more about the Office of the Missouri Secretary of State.