Editor’s note: A summary of these social issues originally appeared in our annual Issues to Watch issue, published January 10th. You can read the full article here.
corporate social justice
A surprisingly important political theme in 2022 was the state-led backlash against ESG investing, investment strategies that emphasize environmental, social, and corporate governance factors in addition to financial performance. The set of practices that make up ESG has a fairly long history and is also known by other names. These include socially responsible investing, where investors buy shares in companies that promote social good and avoid giving to others deemed socially disadvantageous (e.g., tobacco companies).It is only in recent years that social justice investments, particularly those related to the management of public funds, have become controversial. The controversy is tied to a growing movement of activists, including the climate justice movement, which calls for an end to fossil fuel burning and urges divestment from oil and gas companies. Some large private investors, including BlackRock, have issued statements declaring sustainability a key goal of their investment strategies. And while it’s not always clear how much these investment decisions will affect real-world environmental and social outcomes, even the declarations of intent are a sign that some conservative officials are trying to counter the “woke” politics of the left. This has led to the rejection of ESG as part of a broader backlash.
In an October letter to BlackRock’s CEO, Louisiana State Treasurer John Schroeder said the state would withdraw about $800 million from the company’s stock, a move that would “make us more active.” “This is necessary to protect Louisiana from actions and policies that seek to impede the State of Louisiana.” The fossil fuel sector. ” Texas has banned cities from doing business with companies it determines are “boycotting” fossil fuels. Leading the way is Florida Governor Ron DeSantis, who is determined to make Florida a place to “wake up and die.” In an August statement announcing the removal of ESG considerations from the state’s pension investments, DeSantis said that ESG precludes attempts by companies to “impose ideological agendas on the American people through perversion of financial investment priorities.” He said it was reflected.
To date, as many as 24 states have taken some kind of action on ESG, although approaches vary. Some officials have called for protection of major industries such as oil and gas in Texas and Louisiana, while acting to protect public funds by removing non-financial concerns from investment strategies. Some officials claim that it is. Overall, ESG is “so poorly understood that it can easily be mischaracterized and used as a weapon to stir up outrage,” says Chris Fiddler, director of industry regulations and standards at the CFA Institute. . Fiddler said that over the next year, more jurisdictions and fund analysts are likely to develop disclosure protocols to better explain how they incorporate ESG into specific investments. Ta.
Still, there is a possibility that there will be a strong rebound in the short term. House Republicans vowed to use their new majority to examine ESG practices, including the Securities and Exchange Commission’s proposed disclosure rules regarding climate change-related risks. Although the ESG label is still relatively new and does not fully describe the various practices, it may begin to unravel over time. But investors aren’t going to stop considering non-financial factors in their portfolios, especially when it comes to climate risk.
— Jared Bray
crime
Crime became an unavoidable issue during last year’s midterm elections. Candidates and issue groups combined spent more than $150 million on attack ads on crime, mostly accusing Democrats of being too soft. In the past, when the public mood turned punitive, policies were quickly followed to increase incarceration.
However, the results of elections are mixed, and there may be conflicting outcomes on policy. The pendulum always swings between becoming more severe and regressing. This year, the pendulum will swing in both directions at the same time. “We expect to see an unprecedented backlash this year, with blue states stepping up their reform efforts and red states pulling back,” said Adam Gelb, president of the Criminal Justice Council.
Please consider bail. Last year, Illinois became the first state to completely eliminate cash bail (though the state Supreme Court put that plan on hold, at least temporarily, just before it took effect on January 1). Michigan’s new Lakeshore Democratic majority appears willing to change bail requirements, but not eliminate them entirely. Conversely, New Jersey could reverse reforms passed several years ago as part of a wave of media coverage of rising crime in New York.
Several Southern states are poised to follow the lead of a 2021 Texas law that makes cash bail a precondition for the release of even more defendants. Other red states, such as Missouri, are considering legislation that would impose harsher penalties for convicted felons. Still, not everyone thinks the resurgence of tough-on-crime rhetoric during the campaign will lead to broader policies that increase incarceration. “Honestly, I don’t think red states will go back to being tough on crime,” said Jillian Snyder, director of criminal justice policy at the R Street Institute, a conservative think tank. “They recognize that housing costs for inmates run up to $50,000 or $60,000 a year, and that puts a tough burden on us on crime.”
The détente on criminal justice reform between conservatives and liberals over the past decade or so addresses reentry issues when people get out of prison, as opposed to sentencing laws that keep people in prison. We have reached the “final stage”. There is still considerable momentum for policies that help ex-offenders build productive lives, especially “clean slate” laws that expunge people’s records to give them an advantage when finding housing or work. . Even in red states, there is legislation in place to automatically expunge them. Blank proposals to eliminate fines and fees are being pushed by advocacy campaigns that have spent tens, if not hundreds of millions of dollars behind such efforts.
It may sound simple, but it takes people to get people in and out of jail. That’s what’s missing. If you go down the list – police, courts, corrections, parole – every part of the system seems to be in crisis mode due to vacancies and turnover.
Policymakers will have to pay attention to this, said Marshall Clement, deputy director of the Council of State Governments Justice Center. While homicide and violent crime rates are increasing in many states, clearance rates (cases that result in arrests or are otherwise cleared) are decreasing in all but a few states. While this may sound like a technical issue, Clement said that from a deterrent perspective, “spending a dollar on increasing time served is less effective than increasing the probability of being arrested. ” he says.
Legislators should think about things like funding for backed-up crime labs, Clement said. “You can’t really get tougher on crime by punishing fewer people for longer,” he says.
— Alan Greenblatt
LGBTQ
The Respect for Marriage Act was a bipartisan milestone. Establishing that same-sex and interracial couples have the rights and responsibilities of marriage under federal law, alleviating fears of a second cultural bombshell from the Supreme Court.
The law does not interfere with the right of religious groups to define marriage or require business owners to provide services to same-sex couples or families. This does not prevent states from banning same-sex marriage, but Melissa Deckman, CEO of the Public Religious Research Institute (PRRI), said she does not expect many states to move in that direction. do not have.
A PRRI survey of 50 states in 2022 found that nearly seven in 10 Americans support same-sex marriage, as do the majority of religious groups. Almost 80% support laws that protect LGBTQ people from discrimination in housing, jobs, and public accommodations.
“When it comes to LGBTQ issues, issues around transgender rights and school curriculum will gain traction,” Deckman said. 2022 will see hundreds of new bills aimed at restricting classroom discussions of gender and sexuality, restricting medical care for transgender youth, and banning them from participating in school sports. It has been submitted. Very little became law.
In June, the U.S. Department of Education (DOE) announced proposed amendments to Title IX regulations that would establish protections against, among other things, “discrimination on the basis of sexual orientation and gender identity.” If adopted, schools that do not allow transgender students to use the bathroom or pronouns that match their gender identity could lose federal funding.
The movement to move gender and sexuality issues out of schools is framed as a parental rights issue. “There is a concern on the political right that discussing transgenderism is in itself akin to indoctrinating students,” Deckman said.
States and districts have banned books that include LGBTQ characters or themes. The DOE’s Civil Rights Enforcement Division announced it is investigating the legality of the ban instigated by the North Texas School District, a welcome move for librarians and students who easily found the books elsewhere. This is a sign of a backlash.
Transgender girls and women are banned from participating in publicly funded sports in nearly 20 states. Courts in several states have blocked such bans, and a federal appeals court in Connecticut recently dismissed a lawsuit challenging trans-inclusive sports policies.
Pepperdine Law Professor Maureen Weston, director of the university’s Entertainment, Media and Sports Dispute Resolution Project, said the controversy is centered around competitive advantage. However, the science supporting this concern is still in flux.
Weston said it is extremely difficult for any young person to come out as transgender without the added penalty of being excluded from sports. “We also need to consider the balance with fairness.”
If policy debates about sex and gender are aimed at improving young people’s well-being, there are other factors to consider. A 2022 study conducted by The Trevor Project of 34,000 LGBTQ youth found that 45% had “seriously considered” suicide in the past year. Incendiary rhetoric reaches them through social media, whether they search for it or not.
— Carl Smith