Virginia’s attorney general has advised officials at the state’s pension system against making investment decisions that prioritize environmental, social and corporate governance concerns, according to a non-binding legal analysis released Friday.
Jason Miyares, a Republican who serves as Virginia’s top prosecutor, said in an opinion that the Virginia Retirement System’s board of trustees should instead make investments “based on securing the best financial outcomes for VRS beneficiaries.” The pension system’s members include state employees, public school teachers and employees of political subdivisions, such as counties, cities and towns.
“Investments should be driven by careful, calculated financial foresight, not clouded by unfounded ESG whims,” Miyares said in a statement. “This opinion emphatically affirms the Virginia Retirement System’s responsibility and legal obligation to make objective investment decisions, free from the influence of social or political agendas. Safe futures require sound economics.”
Miyares’ advice, written at the request of Republican Rep. Nick Freitas, comes as some state pension programs have opted to prioritize environmental, social and corporate governance policies when making investments, also known as ESG investing.
Virginia Sowers, a spokeswoman for the pension system, said in an email that the pension system has no policy to prioritize such investments.
“In fulfilling its fiduciary duty, VRS carefully analyzes economic factors and assesses monetary risk to achieve the highest return for a given level of risk over the long term,” Sowers said. “This analysis does not include assessing investments through a ‘social screen,’ nor does VRS deploy dedicated ESG funds for its pension plans.”
States such as Illinois And Maryland must factor sustainability and climate risks into their asset decisions. In Maine, the state pension fund must divest from fossil fuels by 2026, a policy adopted in 2021.
Other states such as Florida, Indiana And Kansashas, among other things, created legislation against ESG investing.
In Virginia, lawmakers considered a Bill 2022 which requires the pension system to divest from fossil fuels, although this has not become law. Bill 2023 A bill that would have limited investments based on environmental and political factors failed to pass.
Friday’s publication was Miyares’ tenth opinion memo in 2024. Attorney General opinions provide legal advice, but are not binding on the courts.
___
Olivia Diaz is a staff member for The Associated Press/Report for America Statehouse News Initiative. Report for America is a nonprofit national service program that places journalists in local newsrooms to report on under-reported issues.