Dear ASBN Community,

Institutional investors and companies have been leading voices for sustainable investing and corporate climate action for decades. They are now facing a growing political backlash at the federal and state levels where legislation has been introduced or passed that takes aim at firms that are making sound business and investment decisions to address climate risk. These policies are costing taxpayers hundreds of millions of dollars, exposing retirement beneficiaries to unnecessary risk, placing burdens on financial institutions and creating market chaos. Investors and companies must remain vocal to counter this backlash and reframe the narrative, so the focus is on the progress they've made from their good business and investment practices and the future necessary actions they're taking to combat climate change.

In recent weeks, momentum across the business community has grown. More corporate and investor voices are speaking up, including chambers of commerce, state retirement systems, state treasurers, state banking association chapters, and more. We’ve highlighted some of their comments here.

However, nearly half U.S. states are already considering legislation in various forms that would restrict state investment opportunities by prohibiting consideration of environmental or social factors in business practices. In addition, many states sued the U.S. Department of Labor to stop the recent ruling that will allow employee pension plans to consider climate and ESG factors. If successful, these actions would drastically restrict the free flow of capital toward the clean energy economy.

To combat the false narrative around ESG circulating at the state and federal levels, ASBN is joining Ceres and We Mean Business to send a collective message from US-based companies and investors in this sign-on statement that climate change and other sustainability threats are material risks that should be considered in corporate and investor decision-making. It is good business practice. Plain and simple. The statement will be released to the media and shared with relevant stakeholders in early March, so we are asking companies and investors to sign on by March 12th.

Learn more in the FAQs doc and reach out to Stephanie Erwin ([email protected]) or Mel Mackin ([email protected]) with questions. Sign on here: https://survey.alchemer.com/s3/7141924/ESG-Letter

Thank you.