Where Sustainability Shines In The US – In A Selection Of States

I’m based in the US, where it doesn’t take much effort to find anti-ESG news. Stating the obvious: President Trump falls into the anti-ESG camp. And many federal government agencies are operating under very different missions than those they followed just a few years earlier, demonstrating that anti-ESG is not limited to rhetoric. It’s driving very real change in federal government investments, regulations and priorities – including tariffs, too. Consequently, businesses in the US are operating differently too.

Anti-ESG sentiment and behaviour extends beyond federal government to many US states, with a report from Pleiades Strategy counting the 106 anti-ESG bills that were introduced in US state legislatures in 2025 alone, with 11 bills successfully passed in 10 states. Many of these laws restrict businesses, including financial institutions, from considering ESG factors – especially climate risk and diversity – in investment decisions. A few examples of these are Texas Senate Bill 2337, which prohibits proxy advisors from using ESG or DEI criteria, and Arkansas House Bill 1507, which bans ESG considerations in state university investments, though it includes an escape clause if financial harm is likely.

Go back to the source and follow the numbers: 27 vs 16 and $12T
Recently, 26 state treasurers and financial officers from 21 states sent letters to asset managers from firms such as BlackRock, BNY and Bank of America to remind them to reaffirm their commitment to “traditional fiduciary duty”. These letters directly state that this means:

A commitment to abstain from embedding international political agendas, such as net zero climate mandates, natural capital frameworks, or the EU’s Corporate Sustainability Reporting Directive (CSRD), into default investment strategies and corporate engagement.

The signatories are from state officials in 21 states – Alabama, Alaska, Arizona, Idaho, Indiana, Iowa, Kansas, Kentucky, Louisiana, Mississippi, Missouri, Nebraska, North Carolina, North Dakota, Oklahoma, Pennsylvania, South Carolina, South Dakota, Utah, West Virginia and Wyoming. All of these states voted for Trump in the 2024 electoral college. For those who also voted for Trump in the last election but are not on list, we can count 10 more: Arkansas, Florida, Georgia, Michigan, Montana, Nevada, Ohio, Tennessee, Texas and Wisconsin. The news isn’t great for those of us who are pro-ESG: 6 of these 10 already have some type of anti-ESG law or boycott in place. (Michigan, Nevada, Ohio and Wisconsin do not). That means 27 state legislatures clearly support anti-ESG actions.

But wait, we aren’t done with our counting! On August 21, 16 state financial officers wrote their own letter, reminding asset managers – including BlackRock – that these 16 states represent more than $3 trillion in pension fund assets and ask for “active fiduciary stewardship”, essentially supporting the consideration of risks related to climate, governance and supply chain. States on this letter are: California, Colorado, Connecticut, Delaware, Illinois, Maine, Maryland, Massachusetts, Minnesota, Nevada, New York, New Mexico, Oregon, Rhode Island, Vermont and Washington. While 16 doesn’t sound as impressive as 27, let’s do another layer of analysis: money. These 16 states are responsible for about 42% of US GDP as of 2024 – accounting for over $12 trillion – and they intend to protect sustainable business, which requires learning and adapting to the realities of sustainability and climate.

Yes, the news is confusing when we’re talking about sustainability and ESG, especially in the US. Adding to this, the California Climate Reporting Law (formerly known as SB 253 and SB 261, now combined in SB 219) passed its third court challenge.

Be practical and pragmatic.
In trying to make sense of the confusion, I particularly like the call to action at the end of the Pleiades Strategy letter, asking for “climate realists” to make smart, sensible climate risk decisions. So that’s my ask for you – please join me in educating yourselves on the facts, including the numbers; read our research, be practical and pragmatic, think long-term and short-term, and let’s keep demonstrating how sustainability is connected to achieving business success.