Kansas passes anti-ESG bill, but it’s milder than some want

State Reps. Avery Anderson, left, R-Newton, and Nick Hoheisel, R-Wichita, the chair of House Financial Institutions and Pensions Committee, confer during a break in the House's work Thursday, April 6, 2023, at the Statehouse in Topeka, Kan. Both support a proposal that would prevent state agencies, the state pension fund and local governments from using environmentally and socially conscious factors in investing their funds. (AP Photo/John Hanna)

WASHINGTON: A proposal designed to thwart investing that considers environmental, social and governance (ESG) factors has cleared the Kansas Legislature, but divisions within its GOP majorities kept the measure from being as strong as some conservatives wanted.

Lawmakers approved a bill that would prevent the state, its pension fund for teachers and government workers and its cities, counties and local school districts from using ESG principles in investing their funds or in awarding contracts. Such investment strategies have become the target of GOP lawmakers across the country who argue they are focused more on pushing political agendas rather than earning the best returns.