- Legislation pending in U.S. state of Kansas to stop the use of ESG considerations by public contractors would reduce state pension system returns by $3.6 billion over 10 years.
- Similar to Republican-sponsored bills in other states, the "Protection of Pensions and Businesses Against Ideological Interference Act" before the Kansas senate would require Kansas Public Employees Retirement System (KPERS) to divest from financial companies found to engage in "ideological boycotts".
- KPERS would have to restructure its portfolio because current investment managers would be disqualified as fiduciaries and replaced by alternative investment managers meeting the bill's requirements.
- Early divestment costs in private markets would cost $1.14 billion.
- Other costs would include early divestment fees of new employees for the Kansas state Treasurer to monitor potential boycott activity.
Reuters — Economy — Investment — Monetary Policy — Banking — Climate Change
Kansas anti-ESG bill could cut pension returns $3.6 bln -analysis
Legislation pending in the U.S. state of Kansas to stop the use of ESG considerations by public contractors would reduce state pension system returns by $3.6 billion over 10 years