McRae: The beginning of the end of ESG

By Treasurer David McRae

Note: The following column is provided weekly by Mississippi State Treasurer David McRae. Any opinions expressed here are those of the author and not necessarily that of this publication.

I have some good news for those who have been following our fight against Environmental, Social, and Governance (ESG) investing: The beginning of the end just might be upon us.

For years, myself and others have railed against this woke investment strategy, which mandated that companies put a leftist political agenda ahead of consumers and those with whom they had a fiduciary duty to uphold. But with investment dollars at stake, many companies complied with Wall Street’s left-wing demands.

Of course, it wasn’t just Wall Street making threats; Washington was too. After all, remember that President Biden’s first veto – his very first veto – was a bill that would have protected your retirement savings accounts from ESG investing.

Despite this administration’s best efforts, however, companies like Harley Davidson, Tractor Supply, Jack Daniels, and Harley Davidson have reversed course and abandoned ESG principles altogether.

In some ways, it’s not terribly surprising. Consumers are increasingly growing sour on companies who have gotten too involved in politics. Consider this: In 2022, about half of Americans felt businesses should take a public stance on current events. Today, just 38 percent do, according to a 2024 Gallup Poll.

What I take from that is that customers are simply demanding that businesses stick to business, rather than politics. It’s an obvious choice when one considers a few simple facts. Only about half of Americans have enough money to retire. Combine that with the fact that retirement costs more under the Biden-Harris economic policies, and one will realize that Americans simply don’t have the luxury of risking their retirement to prop up Wall Street’s woke agenda – and they’re speaking out about it with their wallets.

Now, I am a capitalist. I believe in the free market and the power of We the People. I believe that when consumers are given the freedom to make an informed decision, companies will respond. And that is exactly what happened here in Mississippi.

I have never been in favor of state boycott lists. Instead, I fought to arm consumers with information and make sure any state investments were done with your interests in mind (not Wall Street’s). I applied those principles at home and pressured leaders within the federal government, influential entities like Business Roundtable, and financial juggernauts to adopt Mississippi’s strategies. And time and again, they did.

ESG is not over and the woke agenda has not yet been put to bed, but I am optimistic our efforts have sparked the beginning of the end.

I applaud every Mississippian who has spoken out on this issue and every company that has followed the will of the people by abandoning ESG. Americans are facing enough economic headwinds; there is no sense in adding ESG to the mix.

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.