Rokita takes aim at ESG investing, even as Indiana law already bans it

There’s no evidence that Indiana taxpayer dollars are being invested using what’s known as environmental, social and governance, or ESG considerations.

But Attorney General Todd Rokita said he wants to assure Hoosiers that’s true.

ESG investing is a growing practice in which investors consider the environmental and social impacts of their investments. Several conservative-led states have taken steps to ban it when it comes to investing public dollars.

Rokita said the Indiana Public Retirement System (INPRS) is already banned from incorporating ESG investing strategies under state law.

“We all deserve assurance that state retirement funds are being invested solely for financial interests,” Rokita said.

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Rokita said there’s no evidence INPRS is using ESG practices. But he said the state does use outside investment firms to manage its funds. And the Republican AG said he’s investigating whether those firms employ that investment strategy.

There’s evidence that states banning firms that use ESG investing have cost taxpayer dollars by limiting competition and increasing borrowing costs.

Contact reporter Brandon at bsmith@ipbs.org or follow him on Twitter at @brandonjsmith5.