Young Helps End ESG Investing in State Systems with Vote

COLUMBUS — State Representative Tom Young (R-Washington Twp.) has helped pass legislation to strengthen Ohio’s state retirement systems, workers’ compensation and institutions of higher education by prohibiting the practice of environmental, social and governance (ESG) investing.

Senate Bill 6 will require retirement boards, workers’ compensation administrators and boards of trustees of state institutions of higher education to make investment decisions solely to maximize the return on investments. 

Young introduced similar legislation in House Bill 4 at the beginning of this General Assembly. 

“The use of these subjective ESG rating scores is doing nothing except damaging Ohioans free enterprise and financial opportunity,” said Young. “By banning this investment practice for our state systems, Ohio is assuring we are protecting its financial future and investing in what is best based on sound financial practices.”

This legislation will also prohibit state retirement boards, higher education board of trustees, and the Bureau of Workers’ Compensation Board of Directors and Administrator from creating or adopting any policies that require investment decisions to be made using ESG practices.

Senate Bill 6 will now head to the governor for his consideration before being signed into law.