The Wyoming House of Representatives has introduced an anti-ESG bill that prohibits state funds from being invested with asset managers that have taken ESG-related actions or considered ESG factors.
The two largest asset owners in Wyoming, however, have stated the bill would decrease their revenues by limiting the universe of managers to which they would legally have access.
The bill, known as the “Stop ESG-State funds fiduciary act,” was introduced in the House on Jan. 2 and states that the investment of state funds can only consider “financial purposes,” and cannot include “any action taken, or factor considered, by a fiduciary or trustee with any purpose whatsoever to further social, political or ideological interests,” according to the bill text.
A digest included with the bill says the $10.8 billion Wyoming Retirement System and the State Treasurer’s Office, both based in Cheyenne, responded that “this legislation would result in decreasing revenues, primarily as a result of a smaller universe of investment managers willing to partner with Wyoming to provide investment opportunities.”
The retirement system specifically said they estimated if the bill were passed, it would have a revenue reduction of $193 million in fiscal year 2026, $387 million in fiscal year 2027 and $580 million in fiscal year 2028 compared to the status quo. The estimate includes outperformance relative to the system’s reference portfolio.
The State Treasurer’s Office includes the investment office of the Wyoming State Loan and Investment Board, Cheyenne, which oversees a total of $30.3 billion in state assets, including the $11.5 billion Permanent Mineral Trust, $7.3 billion State Agency Pool of operating funds, $5.4 billion Common School Permanent Land Fund and $2.6 billion Workers Compensation Fund. According to the digest, the treasurer’s office did not provide specific information on investment losses.
The bill also prohibits investment managers from using third-party proxy service advisers.