Lima Reporter

State Representative Angie King (R-Celina) has introduced legislation to the House Financial Institutions Committee aimed at preventing the practice of environmental, social, and governance (ESG) practices by Ohio companies and banking institutions. The proposed legislation would have several key provisions.

Firstly, it would empower the Treasurer of Ohio to create a list of all businesses that practice ESG economic boycotts and make this list publicly available. This move aims to increase transparency and allow consumers and investors to make informed decisions about the companies they support.

In addition, the legislation would prohibit government entities from purchasing holdings or entering contracts with companies that practice ESG standards. This measure seeks to ensure that taxpayer funds are not used to support businesses that prioritize social and environmental factors over traditional financial considerations.

State Representative King explained her rationale behind the legislation, stating, "Rather than determining the creditworthiness and value of a business or industry based upon objective measures such as profit, return on investment, consumer demand, and other material performance measures, a social credit score is being used to transform society and 'reset' the global financial system."

Furthermore, House Bill 4 would address the issue of insurers treating customers differently based on ESG standards. The legislation would prohibit insurers from refusing coverage or charging different rates solely based on these criteria. This provision aims to ensure fair treatment for all individuals seeking insurance coverage.

While the legislation has been introduced to the House Financial Institutions Committee, it has not yet been scheduled for additional hearings. It remains to be seen how the proposal will progress through the legislative process in Ohio.

The introduction of this legislation by State Representative Angie King reflects the ongoing debate surrounding ESG investment practices. Critics argue that such practices prioritize social and environmental objectives over financial considerations, potentially impacting the value and creditworthiness of businesses. Proponents, on the other hand, believe that ESG factors are crucial in assessing the long-term sustainability and ethical standing of companies.

As the discussion continues, it is clear that State Representative King's proposed legislation seeks to restrict the prevalence of ESG practices within Ohio's business and financial sectors. The bill aims to protect traditional financial measurements and ensure that taxpayer funds are not utilized to support companies that prioritize ESG standards.

For additional details, please follow this link: https://ohiohouse.gov/members/angela-n-king/news/king-introduces-legislation-to-prevent-esg-investment-practices-117539