TPA Submits Testimony Against South Dakota HB 1247

Last week, TPA submitted written testimony against HB 1247, legislation that would punish financial institutions in South Dakota that consider Environmental, Social, and Corporate Governance (ESG) standards. More specifically, the bill would outright ban ESG considerations that financial institutions would sometimes need to consider to ensure the greatest return on their clients’ investments.

South Dakota legislators have already passed existing laws that make this legislation unnecessary and redundant. Furthermore, ESG investing is not illegal, but this bill would make it so. ESG standards should neither be banned nor mandated. State governments going forward should allow the free market to flow and allow private businesses to make decisions within the framework of their current fiduciary and legal duties. If an ESG investment provides a good yield, why should the state care how the decision was made?

TPA is fighting to prevent the increasing politicization of financial decision-making. Any approach to ESG that is not neutral will harm taxpayers and consumers.

After considerable pushback during the committee hearing, HB 1247 was tabled by the committee. Read TPA’s testimony below: