McRae: Running from ESG
By Treasurer David McRae
Note: This following article is written and offered by Mississippi State Treasurer David McRae and his opinions are that of the writer and not necessarily that of this publication.
As a conservative, I’m a capitalist. In other words, I don’t believe the government should tell private businesses what to do. That’s why much of my approach to the Environmental, Social and Governance (ESG) movement hasn’t been a big-government mandate on private businesses.
Instead, I’ve been upfront that Mississippi will only invest in the most profitable, safe, and beneficial funds (rather than basing investment decisions on political whims). And I’ve worked to empower consumers with the information they need to make an informed decision. And you know what… it’s working.
Earlier this month, John Deere became the latest company to drop its ESG policies, which could have put cultural wokeness above what’s best for customers. During John Deere’s “ESG Era,” the company was rumored to have funded a Pride event for elementary-aged children, created race-based identity groups at their corporate headquarters, and offered gender identity training. How any of this helps build tractors, I don’t know. Fortunately, that era seems to be over.
John Deere’s abandonment of ESG policies is only the last in a series of corporate moves away from wokeism. In June, Tractor Supply Company also left ESG behind, saying “We have heard from customers that we have disappointed them. We have taken this feedback to heart.”
Agriculture isn’t the only industry to see backlash either. Last August, S&P Global – one of the nation’s largest credit rating agencies – announced it would stop publishing ESG ratings altogether, after states and financial officers called their practices out as deceptive and potentially fraudulent.
These reversals are particularly important for states, like Mississippi, whose values don’t always align with those of the Wall Street elites. And here’s why: For years, ESG advocates have been going after private companies, but their attention was beginning to turn to state governments as well. Without change, there was a realistic potential that even if Mississippi maintained our fiscal stability, the state’s credit rating would be downgraded due to our embrace of pro-life, pro-energy, and pro-agriculture policies.
Think about that: You, the taxpayer, would be charged more – not because we don’t pay our bills – but because someone else doesn’t agree with our way of thinking. That’s wrong.
The good news is this is changing. I applaud John Deere for having the courage to honor its customers’ wishes and reverse course, and I encourage other entities to do the same.
Mississippi Treasurer David McRae is the 55th Treasurer for the State of Mississippi. In this role, he helps manage the state’s cash flow, oversees College Savings Mississippi, and has returned more than $85 million in unclaimed money to Mississippians. For more information, visit Treasury.MS.gov
