Rep. Chip Roy (R-TX) proposed legislation Friday that would block federal retirement plans from joining ESG ‘scam’ investing, Breitbart News has learned exclusively.
Roy and other House Republicans introduced the No ESG at TSP Act, which would prevent federal workers who qualify for the Thrift Savings Plan (TSP) retirement plan to invest in environmental, social, and governance (ESG) investing products.
ESG investing has served as leftists’ latest campaign to push investing towards the climate change industry and away from the fossil fuel industry. ESG investing pushes companies to invest based on criteria relating to racial, ethnic, gender identity, sexual orientation, union status, board members, or whether a company is involved in the firearms industry. It also considers a company’s political affiliation.
Roy told Breitbart News TSP allowing ESG investing would enable the federal government to weaken America’s energy resilience and further woke policies.
“ESG investing is a woke scam. It restricts the free flow of capital, undermines U.S. energy freedom to the benefit of our enemies, and advances woke racial and gender ideologies intent on dividing the republic,” Roy explained. “The upcoming changes to TSP would allow billions of taxpayer dollars to serve these ends. The federal government shouldn’t have any part in this radical nonsense, and especially shouldn’t be using your money to do it.”
Reps. Bob Good (R-VA), Bill Johnson (R-OH), Michael Cloud (R-TX), Louie Gohmert (R-TX), Ted Budd (R-NC), Mary Miller (R-IL), and Bill Posey (R-FL) cosponsored the legislation.
The Texas conservative has moved to propose the legislation as TSPO intends to enable ESG investing by allowing 5,000 mutual funds through a new “mutual fund window” which will include ESG funds. TSP manages roughly $817 billion in assets, making it the largest defined plan in the world. Opening TSP to ESG investing would allow for billions of taxpayer dollars, since federal workers’ investments are often matched by agencies, to be allocated to woke companies that comply with ESG criteria.
Roy’s legislation would stop this by:
- Blocking TSP from offering mutual funds, or related investment vehicles, that invest based on ESG criteria
- Preventing TSP from offering funds marketed as ESG funds
These funds shun fossil fuel investing. According to Deloitte’s Center for Financial Services, professionally managed assets with ESG mandates swelled to $46 trillion globally in 2021, representing nearly 40 percent of all assets under management. The result of this is that it has become incredibly hard to raise funds for expanding fossil fuel production. So even oil prices above $100 a barrel are not attracting capital into the sector.
“In a recent episode of Bloomberg’s Odd Lots Podcast, Goldman Sachs’ top commodities strategist describes ESG investing as “a blunt instrument that is reducing capital flows into a very critical sector,” Carney added.
Sean Moran is a congressional reporter for Breitbart News. Follow him on Twitter @SeanMoran3