Utah Treasurer Slams ESG and DEI as Threats to Fiduciary Duty and Pensioners

In a bold stand for financial integrity, Utah State Treasurer Marlo Oaks is leading a charge against the creeping influence of ESG (environmental, social, and governance) and DEI (diversity, equity, inclusion) policies in state investments. Speaking at the State Financial Officers Foundation conference in Orlando, Oaks argued that these frameworks, often touted as progressive, undermine the sacred fiduciary duty to prioritize investors’ financial returns.

"When you manage money for others, you don’t get to play social engineer," Oaks declared, emphasizing that ESG introduces motives beyond profit, clashing with the duty to act in the best interest of beneficiaries like teachers, firefighters, and police officers. These public servants, he noted, rely on state pensions for their retirement, and any deviation from merit-based investing risks their financial security.

Oaks, a vocal critic of ESG, has penned multiple letters warning against its impact, arguing it pushes a "woke" agenda that distorts market priorities. He ties DEI to the same issue, calling it the social arm of ESG. "DEI shifts hiring from merit to discriminatory practices," he said, citing companies like Target and Bud Light, where controversial policies allegedly tanked shareholder value.

Joined by other Republican state financial officers, Oaks praised recent efforts to roll back DEI in government, including over $2 billion in savings from cuts during the first 100 days of the Trump administration. In March, he and two dozen colleagues sent a letter to the SEC and asset managers, flagging the financial risks of prioritizing political agendas over returns.

"Our obligation is clear," Oaks concluded. "We serve the hardworking people who trust us with their future, not activists pushing policies that harm the bottom line."