March 31, 2023

The U.S. and Canada are Two Countries with ‘One Heart.’; Texas Anti-ESG Investing Bill Faces Pushback Over $6 Billion Cost to Pensions

The U.S. and Canada are Two Countries with ‘One Heart.’

During President Biden's visit to Canada, the U.S. and Canadian governments discussed the progress made under the February 2021 Roadmap for a Renewed U.S.-Canada Partnership. They reaffirmed their alliance and commitment to overcoming the daunting challenges of today and realizing the full potential of the relationship in the future. To that end, Canada and the U.S. will work together to:

  • Catalyze clean energy and create jobs through robust policies; launching a one-year Energy Transformation Task Force, committing to achieve net-zero power grids by 2035, promoting North America trade of low-emissions goods and developing secure and reliable North American nuclear fuel supply chains
  • Strengthen environmental responsibility of mineral and semiconductor supply chains by investing to support clean energy and transportation infrastructure projects necessary to accelerate critical minerals production
  • Protect shared waters and the Arctic, commit to advancing conservation, environmental protection and resilience in partnership with Indigenous people.

Invert Insights:

The environmental strategies and commitments of the U.S. and Canadian governments aim to address the primary sectors necessary for building a resilient and prosperous economy, support essential living standards, decarbonize industries that depend on them, and promote sustainable production.

Texas Anti-ESG Investing Bill Faces Pushback Over $6 Billion Cost to Pensions

Proposed legislation introduced in Texas aimed at prohibiting ESG investing in the state’s public retirement investment system may cost the pension system billions in lost returns. The bill marks the latest in a series of anti-ESG moves in Republican states, including the formation of a multi-state alliance to “protect individuals from the ESG movement” through actions such as blocking the use of ESG in all investment decisions, and prohibiting state fund managers from considering ESG factors in their investments on behalf of the state. 

Invert Insights:

There are several reasons why investors may favor ESG investing. Firstly, there is growing evidence that companies with strong ESG practices can provide superior long-term investment performance. Furthermore, ESG investing can help investors identify and manage risks that may not be captured by traditional financial analysis, such as exposure to reputational or legal risks that could impact financial performance. Lastly, it contributes to a more environmentally and socially responsible future. However, some skepticism around ESG investing remains, including concerns of subjectivity and consistency in evaluating ESG factors and its usage as a means of advancing a political or ideological agenda.

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