Investors and companies remain firmly committed to business strategies that take all material financial risks and opportunities into account – from inflation to labor shortages to climate change – because it is a critical part of their job. The economic impacts of climate change, for example, which are estimated to cost $178 trillion over the next 50 years, present significant risks to investment portfolios and business operations. And acting on these risks presents enormous opportunities as the world accelerates the transition to a clean energy future. However, some elected officials and special interests are working to restrict investors and companies from considering the financial impacts of climate change and other material issues in decision-making.  

While nearly half of U.S. states have considered policies that would restrict asset managers’ decision-making ability, many of these measures have failed or stalled. The financial value of clean energy, the business risks of climate change, and the opportunities associated with building a stronger, more resilient economy are undeniable factors that mainstream investors and companies consider in decision-making to plan for the long-term. They must continue to take these factors into account to make decisions that are best for their shareholders, beneficiaries, employees, and customers.   

That’s why hundreds of private and public sector leaders are mobilizing around a unified message to policymakers: Protect the Freedom to Invest Responsibly.  

Under the “Freedom to Invest’ banner, these leaders are reminding policymakers that building profitable businesses and investment portfolios and ensuring long-term shareholder value demands an analysis of all material financial factors. Therefore, investors and companies must be free to invest the way they want. Restrictive policies that restrict investors and companies from taking into account these considerations simply defy responsible investing and business practices.