BATON ROUGE, La. — Louisiana State Treasurer John Fleming, M.D., is calling on the CEOs of the nation’s largest financial institutions to abandon environmental and social investment practices he says prioritize politics over performance.
Dr. Fleming joined financial officers from 20 other states this week in signing a letter to asset managers at 27 of the country’s top financial firms. The message: focus on financial returns and remove political agendas from investment decisions.
“For these financial institutions to compete for business in our states,” the letter reads, “we expect detailed evidence that your firm’s investment practices, proxy voting and corporate engagement behavior (which should be minimal to begin with), and institutional affiliations align with traditional fiduciary standards.”
The joint letter, organized by the State Financial Officers Foundation (SFOF), highlights growing concern among state leaders over the use of public funds to advance environmental, social, and governance (ESG) goals—policies the group refers to as “woke.”
“Fiduciary duty isn’t about predicting the future or solving global issues. It’s about making sound, disciplined decisions that put our beneficiaries’ financial interests first,” said Dr. Fleming. “We’re seeing too many cases where that core responsibility is being replaced by ideology.”
Citing a recent federal court ruling—Spence v. American Airlines—the letter points to findings that American Airlines allowed BlackRock to pursue ESG goals at the expense of employees’ financial returns, breaching its fiduciary duty.
To ensure alignment with what the group calls “traditional fiduciary duty,” the letter outlines five key steps for firms:
- Stick to Real Risks – Avoid using speculative climate models to drive strategy changes.
- Respect Passive Investing – Don’t use index and target-date funds to push social agendas.
- Avoid Global Political Goals – Refrain from incorporating mandates like “net zero” unless tied to clear financial value.
- Transparent Voting and Engagement – Ensure every vote and corporate engagement focuses solely on shareholder value.
- Disclose Affiliations – Reveal ties to advocacy groups like Climate Action 100+, PRI, or GFANZ that may influence firm actions.
Dr. Fleming emphasized, “Our goal is simple: make sure the public’s money is managed with financial focus, not political motivation.”
The letter calls for responses from firms by September 1, 2025, with clear proof that their investment strategies follow traditional fiduciary principles. While some firms have made adjustments, the SFOF coalition believes more action is needed.