Ted Cruz targets BlackRock, State Street with new bill to block ESG voting

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illuminem summarises for you the essential news of the day. Read the full piece on ESG Today or enjoy below:

🗞️ Driving the news: Senator Ted Cruz has introduced the Stop TSP ESG Act, a bill aimed at preventing asset managers from voting on Environmental, Social, and Governance (ESG) and Diversity, Equity, and Inclusion (DEI) issues within the U.S. Thrift Savings Plan (TSP)
• The TSP, a federal retirement fund now exceeding $1 trillion in assets, is managed by BlackRock and State Street, which Cruz accuses of using federal employee funds to push ESG agendas

🔭 The context: The bill is part of a broader push by Republican lawmakers to curb ESG and DEI policies in investment practices, particularly those involving taxpayer dollars
• Cruz’s bill targets BlackRock and State Street, two major asset managers currently embroiled in a multistate lawsuit for allegedly violating antitrust laws through their involvement in sustainable investing and climate coalitions

🌍 Why it matters for the planet: The ongoing scrutiny of ESG-focused investment practices reflects a growing divide in U.S. politics regarding climate action and corporate responsibility
• If passed, the legislation could set a precedent that limits the influence of ESG and climate-related initiatives in federal investment decisions, potentially shifting focus away from sustainability in favor of more traditional financial strategies

⏭️ What’s next: The bill’s success will depend on the support it garners in Congress
• As part of the growing anti-ESG movement, the legislation faces an uphill battle, especially given its implications for the broader corporate approach to sustainability and climate action

💬 One quote: “Americans deserve assurance that their retirement savings are being invested in the most fiscally responsible ways.” — Senator Ted Cruz

📈 One stat: The U.S. Thrift Savings Plan recently surpassed $1 trillion in assets, managed primarily by BlackRock and State Street

See on illuminem’s Data Hub™ the sustainability performance of BlackRock, State Street, and peers like PwC

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