The Wyoming Legislature is currently considering House Bill 80, a bill that would restrict Wyoming’s investment managers from investing in any company that supports environmental, social and governance (ESG) policies.
ESG is generally seen as an investing approach that incorporates various progressive ideals and guidelines as guardrails for what companies choose to invest in. Fossil fuel companies almost always receive a low score in the ESG realm.
Although both State Treasurer Curt Meier and Secretary of State Chuck Gray oppose ESG, they expressed significantly different opinions about HB 80 and the topic of ESG on Cowboy State Daily’s Morning Show with Jake on Monday.
Where They Stand
Meier takes a slightly more agnostic approach to ESG and argues that the state should be most concerned with making as much money as possible, while Gray believes Wyoming should take a hardline stance against ESG regardless of the financial fallout.
“We shouldn’t have anything to do with them (ESG),” Gray said.
On Monday, Meier commended the legislators who made changes to the bill he believes now protects the pensions in Wyoming’s retirement system and keeps Wyoming a viable entity for investment firms. An earlier version of the bill contained a provision that would have penalized investors who invest the state’s money in ESG funds.
The ESG policy as proposed is already enforced under current state rule, but the bill would codify it into law.
Don’t Get Mad, But Also Don’t Fall Victim
Meier said as a general investing practice, one should never get mad at their money, a phrase he’s commonly used throughout the years.
In the treasurer’s office annual report, Meier continued with this sentiment and mentioned how “money is green, not red or blue, and we’re always working for you,” in reference to making nonpartisan investing decisions that don’t take ESG into account.
To that, Gray responds, “don’t let your money push you off a cliff.”
During former President Joe Biden’s administration, ESG policies took off in the federal government and private sectors. President Donald Trump has opposed these policies.
“We cannot allow this evil to succeed or it’s just going to get worse,” Gray said.
Gray said ESG represents everything that inspired him to get into politics, to help the public in reaching its full potential.
Although he agrees with Meier that taking a hard stance against ESG isn’t easy, Gray believes the treasurer is taking a naive approach to ESG. Gray sees it as a strategy that will destroy Wyoming.
“The most worthwhile things in life are the most difficult,” Gray said.
Talking Out Of Both Sides
Last year, Meier’s office invested in a 450-mile natural gas pipeline system in the Powder River Basin. Meier said this investment was purely made out of a desire to support Wyoming’s fossil fuels industries, which the state government is dependent on for about half its annual revenue.
Meier said the state originally bought these shares at 55 cents a pop. Six months later they almost doubled their money.
“We’re going to invest in Wyoming energy where it makes sense to be there,” Meier said.
Goldman Sachs, which has made ESG commitments, invested $300 million-$400 million in the same pipeline, Meier said, which he described as talking out of both sides of their mouths.
“They’ve had their highest returns they’ve had in years and a big part of that is what they made on that Wyoming deal on energy, which is what they said they weren’t going to do,” he said. “When there’s money to be made, those guys will change their tune.”
When asked if he expects Gov. Mark Gordon to veto HB 80, Meier was noncommittal and said it still needs to get through the Senate first.
“I think there’ll be some changes and they’ll probably try to streamline the bill in different areas,” Meier said.
Meier also expressed confidence that the Trump administration will expedite a Wyoming push to purchase federal mineral rights in the Powder River Basin with the money it made off the sale of the Kelly Parcel in Teton County late last year.
The $100 million sale will earn Wyoming $2 billion for education dollars over the long term.
“It’s not going to be five or seven years, he’s going to have it in there in a year if not six months,” Meier said.
Leo Wolfson can be reached at leo@cowboystatedaily.com.
