Red State Treasurer Sounds Off on DEI's Threat to Shareholders
State treasurer discloses rationale for state financial officials' responsibility to challenge ESG and DEI initiatives.
We chatted up Utah's state treasurer, Marlo Oaks, at the State Financial Officers Foundation conference in sunny Orlando, Florida.
In an exclusive sit-down, Oaks shared her thoughts on the importance of reviving meritocracy and financial responsibility in the investment world, as Republican state financial officers nationwide aim to scrub government of DEI and ESG principles.
"ESG tosses another goalpost into the game of tackling societal issues through investments, and it violates the fiduciary commitments we, as financial officers, have sworn to uphold," Oaks told us at the conference.
"When managing money for others, you can't let personal agendas get in the way. We have a duty to perform for our beneficiaries - individuals who rely on this money for their retirement, and it's our job to act in their best financial interest."
Oaks has positioned herself as a frontrunner against ESG, with critics claiming companies and institutions misuse ESG to push "woke" ideologies. She has penned several letters expressing her views.
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We sat down with Oaks to discuss ESG and DEI (Thinkstock/Getty)
"ESG brings in another objective to address societal issues through investments, and that's not what we're here for," Oaks elaborated. "We're here to make money."
Oaks and her fellow Republicans at the conference have been outspoken critics of DEI measures and have lauded President Trump for his efforts to scale back DEI in government.
"DEI is the social component of ESG, and it's important because activist groups try to shoehorn their agendas onto corporate America," Oaks explained. "Companies have a commitment to their shareholders, and when they introduce things like DEI, they choose discriminatory hiring practices that ultimately harm the company and its financial health."
Oaks was one of 24 state financial officers who penned a letter to the U.S. Securities and Exchange Commission, asset managers, proxy advisors, and public companies in March, warning about the financial risks associated with prioritizing a political agenda, like DEI, over financial returns.
Oaks told us that introducing DEI initiatives at the state financial officer level could potentially create financial harm.
"We've seen companies like Target and Bud Light, among others, adopt policies that don't align with shareholder interests. These decisions negatively affect shareholder value and, ultimately, hurt the outcomes of hardworking public servants - teachers, firefighters, police officers - who need the money for their retirement."
Our correspondent Deirdre Heavey contributed to this report
Andrew Mark Miller is a reporter at our site. Follow him on Twitter @andymarkmiller and email tips to [email protected].
Enrichment Insights:
- Utah State Treasurer Marlo Oaks favors a focus on financial performance over ideological perspectives in investment decisions. She believes that DEI measures distract from merit-based principles and compromise financial obligations to beneficiaries.
- Oaks opposed President Biden's executive orders aiming to bolster DEI initiatives across federal agencies and is a proponent of President Trump's efforts to limit DEI in government.
- By expressing her stance on ESG and DEI, Oaks aims to uphold her duty to prioritize the financial best interests of shareholders, as she views these initiatives as detrimental to long-term shareholder value.
- Oaks is not alone in her opposition to ESG and DEI; other Republican state financial officials across the country share her views and have taken action to limit these initiatives.
- Marlo Oaks, the Utah State Treasurer, has expressed her opposition to the ESG (Environmental, Social, and Governance) approach, claiming it introduces unnecessary objectives that divert attention from the primary goal of making money.
- Oaks has been vocal about her disapproval of DEI (Diversity, Equity, and Inclusion), seeing it as a social component that allows activist groups to impose their agendas onto corporate America, potentially resulting in discriminatory hiring practices.
- Oaks, along with other Republican state financial officers, has written letters to regulatory bodies warning about the potential financial risks of prioritizing political agendas, such as DEI, over financial returns, citing examples of companies like Target and Bud Light that have adopted policies seemingly against shareholder interests.
