(The Center Square) – The state of Wyoming could officially soon require disclosures for any investments that use environmental, social, and governance strategies.
The secretary of state’s office last week adopted amendments to its securities rules requiring agents, advisors, and brokers “to disclose to their customers or clients whether they are incorporating a social objective …” and ensure clients “are aware of the potential risks of their investments and provide informed consent to these investments and/or investment strategies…”
The new rules, however, await a review and final approval by Gov. Mark Gordon.
Secretary of State Chuck Gray said in a statement that he’s “concerned and troubled by the negative impact” from ESG investing on key Wyoming industries such as agriculture, and oil and gas.
“With an increasing trend of mutual funds and brokerage firms being pressured by woke politicians to offer investment products which employ ESG principles, we must take an active role to protect our state and consumers,” Gray said. “The proposed rules are key to ensuring consumers are protected from woke ESG strategies, and I’m proud of our adoption of the rules.”
Gordon’s office did not immediately respond to The Center Square’s request for comment.
Republican-led states across the country have taken aim at ESG investing strategies in recent years, arguing it abandons fiduciary responsibility and leaves retirement savings in jeopardy in favor of left-wing politics.
Wyoming is part of an 18-state coalition of governors opposing a rule change by the Biden administration pushing ESG, as well as a 25-state lawsuit against the new rule.
