The investment policy now specifies that "non-pecuniary factors may not be considered," and that includes any agreements related to "environmental or social goals" or "corporate governance structures based on social characteristics."
Ms. Yee said in the news release the adoption of the policy revisions is a reaction to "big government overreach to manipulate the private sector and force its hand in the business of picking winners and losers, based on radical ESG policies."
The board has never adopted any ESG-related policies, and the revisions are intended to assure that non-pecuniary factors "will continue to not be used in the investment decision making process."
The board oversees the Arizona state treasurer's office investment pools, which includes the $7.1 billion Permanent Land Endowment Trust Fund. The endowment fund has a target allocation of 60% domestic equities and 40% domestic fixed income.
Alyssa Koury, state treasurer's office spokeswoman, could not be immediately reached for further information.