Utah smart to reject S&P's imposition of state ESG metrics, now other states need to join them

Standard & Poors' plan to add inherently political  "Environmental, Social, and Governance," (ESG) indicators to its S&P global credit ratings for state and local governments threatens to distort ratings and compel political conformity in the markets.  

The unified voice of Utah's statewide elected officials and federal congressional delegation this week in rejecting S&P's imposition of ESG metrics is a welcome development that other states should quickly replicate.

The state not only categorically rejected the ratings scheme but demanded S&P withdraw and cease to publish any indicators for Utah. 

ELON MUSK, MARC ANDREESSEN MOCK ESG INVESTING

The state will refuse to participate in gathering or submitting data for reporting, calling ESG scores at best a distraction from S&P's core mission and at worst potentially illegal.  The letter boldly called out the rating agency for politicizing what should be a purely financial decision.

Broader application of ESG scoring in the financial markets threatens future returns on pensions and retirement funds, economic growth, and American prosperity. 

The Biden administration has repeatedly signaled its intent to force American companies to disclose their compliance with left wing political goals through mandatory disclosures, despite the administration's inability to win democratic support for such invasive and costly regulations through Congress.

These metrics essentially grade borrowers on their compliance with a progressive Green New Deal agenda the American people have repeatedly rejected. Utah, by virtue of its careful spending and responsible debt repayment, has the best credit rating in the world. But despite its well-deserved creditworthiness, lenders could fear being penalized themselves for doing business with an energy-producing state.

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America's rich energy resources, from natural gas to rare earth minerals, can potentially protect the United States from dependence on foreign adversaries for energy, as Europe is now experiencing. But under the ESG rating system being promoted by the left, access to financial markets and lending could potentially be restricted to those whose politics align with leftist political objectives.

The ESG movement is anti-capitalist, anti-American, and must be stopped in its tracks.  States are uniquely positioned to push back on this perversion of free markets.  

To his credit, Utah State Treasurer Marlo Oaks has been sounding the alarm bells since shortly after he took office last summer.  He has been joined by state treasurers from dozens of other states who recognize the potential for ESG to weaponize financial markets for partisan purposes.

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Voters hoping to galvanize their own states in this battle would be wise to pay attention to sleepy state treasurer races this fall, where they will elect the people who oversee state investment and pension portfolios. 

The ESG movement is anti-capitalist, anti-American, and must be stopped in its tracks.  States are uniquely positioned to push back on this perversion of free markets.  

Competitive races in Colorado, Nevada, Iowa, Kansas, Arizona, New Mexico, Rhode Island and Wisconsin could be critical in this battle. Entrenched incumbents in California, Connecticut, Delaware, Illinois, Massachusetts and Vermont could likewise benefit from a voter-driven wakeup call in 2022.  

Democrats hope to push the most radical elements of their climate agenda through state treasurers, who can then use taxpayer investments to subsidize an impossibly expensive climate agenda that many voters do not support.

Utah is the first state to aggressively push back on the ESG racket. Let's hope it is not the last.

Jason Chaffetz is a Fox News contributor and the host of the "Jason in the House" podcast on FOX News Radio. He joined the network in 2017. Read more.