Reports that the Texas State Board of Education is going to be financially divesting from a fund purportedly because of a law reacting to Environmental, Social, and Governance (ESG) policies should concern taxpayers everywhere, and particularly Texas taxpayers. In reaction to this news, National Taxpayers Union President Pete Sepp released the following statement:
"NTU agrees with Chairman Kinsey's observation that the Board "has a fiduciary duty to protect Texas Schools," but that can and should start with protecting Texas taxpayers. It should also mean the whole Board is engaged and involved in important actions, even if there isn't unanimity. Other Board Members have voiced concern with the Chairman's decision, most prominently fellow Republican Pat Hardy. As NTU has noted, Texas' policies regarding ESG are costing taxpayers big; a recent study pegged the additional public sector costs at $270 million.
The value proposition to taxpayers of state investment funds in schools, retirement, or anything else is risk and return, rather than favoring any one industry or investment over another. That value proposition could include investment in traditional energy, renewables, both, or neither at any given point in time, but should be done so transparently and without political pressure from either side of the ideological spectrum."
For more information or a discussion with NTU President Pete Sep on how ESG policies and divestments affect taxpayers everywhere, contact NTU Vice President of Communications Kevin Glass at 703-299-8670 or at kglass@ntu.org