Committee to Unleash Prosperity Study Finds Dozens of Major Investment Houses Embraced ESG Proposals At the Expense of Shareholders

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May 17, 2023, 09:17 ET

ESG Investing Strategies May Be Costing Tens of Thousands of Dollars per Client in Lost Retirement Income

WASHINGTON, May 17, 2023 /PRNewswire/ -- An analysis of proxy voting behavior by America's largest investment firms finds that the majority are putting political ideology over the best returns on the retirement funds and lifetime savings of tens of millions of their clients.

The study ranks the 40 largest money management firms (from Fidelity to State Street to Blackrock) based on how often they voted in favor of the 50 most intrusive ESG shareholder resolutions. All of these resolutions were OPPOSED by company management and are at best incidental to, or in most cases harmful to, shareholder returns.

The study cites solid evidence that firms distracted by ESG activities typically underperform the stock market. These ESG resolutions often require firms to engage in race or gender quotas in hiring and board representation rather than choosing the highest quality candidates; adopt net-zero emission policies; or even divest from high-performing activities, such as oil and gas production.

The firms that had the best performance for shareholders and received the grade of A in terms of rejecting ESG resolutions were:

Dimensional
Vanguard
Fidelity
T. Rowe Price

They voted at least 85% of the time against hostile ESG proposals.

The grade of F- went to six firms that supported more than 90 percent of ESG-focused shareholder resolutions:

Deutsche Bank
Swisscanto
Northern Trust
Storebrand Asset Management
Invesco Perpetual Select Trust
BNP Paribas

"We think investors around the country have an absolute right to know how the firms they entrust their lifetime savings with are playing politics with their money and risking a lower return," said Committee to Unleash Prosperity co-founder, Stephen Moore. "And they are doing so without the approval or even knowledge of their clients."

The Committee to Unleash Prosperity is dedicated to educating policy makers and the public about policies to maximize economic growth and prosperity in America and around the world. For more information: www.committeetounleashprosperity.com

SOURCE Committee to Unleash Prosperity