California’s Retirement Fund Once Pushed For Federal ESG Rules. Now They Say Fossil Fuel Divestment Hurts Retirees. | Eastern North Carolina Now

    Publisher's Note: This post appears here courtesy of the The Daily Wire. The author of this post is Ben Zeisloft.

    The California Public Employees' Retirement System (CalPERS) recently opposed legislation that would require divestment from fossil fuel companies despite the agency's support of the environmental, social, and corporate governance movement, also known as ESG.

    A bill submitted earlier this year by three California Democrats asserts that "efforts to obstruct climate stabilization policies" from fossil fuel companies are "incompatible" with the state's climate policies. Board members for CalPERS voted to recommend against the passage of the bill, saying divestment would "create a ripple effect on our ability to produce the investment returns needed to fulfill our members' retirement promises" and have little impact on fossil fuel companies' operations, thereby doing "nothing to reduce greenhouse emissions."

    Despite the opposition to fossil fuel divestment, a hallmark of ESG investment proposals, CalPERS was one of the entities which prompted the Securities and Exchange Commission to consider rules mandating that companies include climate-related information, such as carbon emissions levels and climate-related risks, in their financial statements and annual reports.

    Skeptics of the ESG movement assert that the investment philosophy intermixes political and social causes favored by executives, such as reducing carbon emissions or diversifying company leadership, in a manner that compromises or distracts from profitability. CalPERS currently maintains an ESG framework to "assess potential risks to our investments," divested from thermal coal five years ago, and more recently joined the United Nations Net Zero Asset Owner Alliance to mitigate rises in global temperatures by 2050.

    1792 Exchange President Paul Fitzpatrick said in an interview with The Daily Wire that ESG is "the marriage of Wall Street's desire to make more money and the Left's desire to push unpopular policy through corporations." He noted that climate objectives, and social agendas, such as diversity efforts and support of LGBTQ-related causes, do not affect "whether a company produces a good product or is well-governed."

    Fitzpatrick also noted the lackluster performance of ESG funds last year as technology firms, which ESG managers tend to favor because of their emphasis on corporate social responsibility, suffered in the stock market, while energy companies, which ESG managers tend to dislike because of carbon emissions associated with the sector, witnessed outsized returns. CalPERS witnessed a 6.1% loss last year, falling below the median of other state retirement programs.

    "Because of ESG funds' bias against fossil fuels and support of radical corporate goals to get portfolios to net zero greenhouse emissions by 2050, these funds underweight energy stocks and overweight tech. For individuals who are retired or retiring soon, that has a big impact on their portfolios and retirement security," Fitzpatrick continued. "Especially going into a recession, it's not wise to divest from fossil fuels and lower returns for retirees."

    CalPERS is one of several major investment entities to admit in recent months that fossil fuel divestment is harmful to returns: Officials from the Government Pension Fund Global in Norway, one of the nation's two sovereign wealth funds, acknowledged they had missed the chance to benefit from outsized returns in the energy sector last year, while executives from Harvard Management Company, which manages the elite university's endowment, disclosed that its losses were attributable to fossil fuel divestment efforts even as the organization remains "proud to be deeply engaged in the issue of sustainability."

It has been far too many years since the Woke theology interlaced its canons within the fabric of the Indoctrination Realm, so it is nigh time to ask: Does this Representative Republic continue, as a functioning society of a self-governed people, by contending with the unusual, self absorbed dictates of the Woke, and their vast array of Victimhood scenarios?
  Yes, the Religion of Woke must continue; there are so many groups of underprivileged, underserved, a direct result of unrelenting Inequity; they deserve everything.
  No; the Woke fools must be toppled from their self-anointed pedestal; a functioning society of a good Constitutional people cannot withstand this level of "existential" favoritism as it exists now.
  I just observe; with this thoughtful observation: What will happen "when the Vikings are breeching our walls;" how do the Woke react?
793 total vote(s)     What's your Opinion?

Considering what has happened to our Representative Republic since the corruptive orthodoxy that led to the tolerated abomination - The Russia Hoax - where felonies were perpetrated upon the American People by the creation of the Two Tiered Justice System, in the misnomer of "Social Justice:" Where do you stand on sustaining our constitutionally guaranteed freedoms in a society where injustice is chronically sanctioned by one political orthodoxy?
  I believe in a perfected society by employing a higher governmental authority to train the behavior of the public.
  The United States Constitution does not allow just a few freedoms, it guarantees ALL freedoms promised to Humankind by God.
  Just don't take away my Social Media.
404 total vote(s)     What's your Opinion?

Go Back


Latest Op-Ed & Politics

Texas Governor Greg Abbott shared a video on social media this week showing President Joe Biden’s Border Patrol cutting razor wire that the state of Texas had placed alongside on the Rio Grande to stop illegal aliens from flooding into the country.
Mourners were joined by current and former politicians Monday for a somber ceremony marking the 22nd anniversary of the September 11, 2001, terror attacks.
Residents of the Village of Bald Head Island, a small community located off the coast of Brunswick County, are facing a substantial 21% tax hike as part of the recently approved budget by council.
A.I.-generated supermodels are turning heads and garnering millions of followers with their slim, lithe, fake bodies showing off fake bikinis and elegant, non-existent gowns.


No paper deeds leave your property rights at the mercy of the internet.
There is a growing push for legislation to bar wealthy foreign billionaires like Switzerland’s Hansjorg Wyss from pouring hundreds of millions of dollars in support of leftist causes in the United States
Late Tuesday evening, Senate Bill 90, previously known as the Searches of Student’s Person bill, was almost entirely revised and reintroduced in the House under the new name of the Children’s Law Omnibus bill.
Scott Smith: "What should scare every American is that I had to take this, because I could not trust our justice system"
Cooper wants expensive and unreliable wind and solar


Former hedge fund executive Dave McCormick announced Thursday evening that he was launching another bid for U.S. Senate in Pennsylvania as Sen. Bob Casey (D-PA) becomes more vulnerable as a result of President Joe Biden’s failures as president.


Back to Top