INDIANAPOLIS — Indiana's attorney general says profits should be the only thing considered when the state invests money for its pension funds.
Todd Rokita said his office is now investigating some big investment advisors for not doing that.
Rokita is upset about something called ESG, which stands for "environmental, social and governance-based investigating."
On Thursday, the attorney general released an advisory opinion that says ESG investigating for the state's public retirement plans is prohibited under Indiana law.
He called out some big investment firms because he claims they use ESG investing to advance environmental causes, rather than focusing solely on high returns for teachers, first responders and other Hoosiers who rely on the state's pension retirement system.
"Our advisory opinion makes clear often times pension funds to advance social goals rather than maximize financial returns is not only unconscionable and unethical, but it's illegal," Rokita wrote.
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But investment firms say state officials are just playing politics. They say environmental and climate risks pose a huge financial risk to companies and investors, and that must be considered to make wise investments.
It's unclear how the AG's opinion will impact the state's investment decisions, but those decisions affect nearly a half-million public employees who participate in state retirement plans.
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