JEFFERSON CITY, Mo. — After testifying in committee, Secretary of State Jay Ashcroft is pleased that legislation initiated by his office regarding impact investing – often called ESG – is moving forward in the state legislature. Missouri is leading the way as one of the first states to implement safety measures regarding the environmental, social and governance investing strategy.
“I am pleased to see Missouri leading the way on ESG legislation,” Ashcroft said. “Missourians work hard for their money. And when they invest, it makes sense to have standards in place for financial advisors who want to propagate strategies and agendas that are not purely focused on generating profit for their clients. We just want to make sure the investor is made aware of agendas that could affect their bottom line.”
The ESG framework is designed to measure and quantify the degree to which an organization is operating in a “sustainable” manner. These assessment methods monitor and provide information regarding an organization’s performance relating to nonpecuniary concerns such as greenhouse gas emissions, use of natural resources and a company’s social awareness platform.
Ashcroft has worked for months with the Securities Division within his office and members of the legislature to implement measures to better protect Missouri investors and ensure financial transparency. HB 863, sponsored by State Representative Michael O’Donnell, would require financial advisors and representatives to provide written acknowledgment from clients before investing in agenda-based securities.
“I’m proud of the package of legislation we’ve built because we’re focused on consumer protection and awareness,” O’Donnell said. “We’ve taken a practical and pragmatic approach to helping Missourians choose whether they participate in this emerging space or not.”
Last month, Ashcroft submitted language to the Administrative Rules Division within his office that would implement disclosure standards for such investments, and was hopeful the legislature would take the next step with laws regulating the ESG agenda. Ashcroft will continue to work closely with the legislature and others in efforts to finalize this bill.