Nebraska

Title

Key Dates

Nature of
Action

ESG Category

Summary

Attorney General Releases Anti-ESG Report

Adopted and in effect
12/6/2022

Attorney General Position

Restrict Use of ESG Factors; Focus on Pecuniary Characteristics

■The Office of Attorney General Doug Peterson released a 37-page report "to inform public policymakers and those who enforce the law in Nebraska about ESG to ensure that they understand the legal threats that it poses…[and] to provide awareness to the general public, much of which will be directly impacted by ESG practices.” The report flags what it deems key flaws of the ESG movement, namely that it lacks consistent metrics and ratings; its factors are often in conflict; its proponents do not practice what they preach; and it fails to deliver increased financial returns to investors.

Title

Key Dates

Nature of
Action

ESG Category

Summary

LR237: Interim study to determine to what extent, if any, companies operating within or contracting with the State of Nebraska, are using environmental, social, and governance (ESG) metrics

Introduced, but did not pass in the 2024 legislative session

Legislation

Restrict Use of ESG Factors; Focus on Pecuniary Characteristics

■A resolution to propose an interim study to determine to what extent, if any, companies operating within or contracting with the State of Nebraska are using environmental, social, and governance (ESG) metrics.

■This study shall examine impacts of ESG metrics on Nebraska industries and ask the following questions:
(1) Is doing business with entities using ESG metrics, in effect, unconstitutionally delegating proxy voting authority to business entities that hold no elected mandate?
(2) Is engagement in the use of ESG metrics posing a threat to the State of Nebraska's ability to act in the financial best interest of Nebraska taxpayers?
(3) Should the State of Nebraska stop doing business with companies using ESG metrics?
(4) Does doing business with companies using ESG metrics violate the policies and principles of the State of Nebraska?

LB743: Adopting the Investment Neutrality in Public Funds Act

Introduced, but did not pass in the 2024 legislative session

Legislation

Restrict Use of ESG Factors; Focus on Pecuniary Characteristics

■Requires an investment fiduciary to discharge his or her duties in the interests of the participants in a public employee retirement system and their beneficiaries for the exclusive purpose of providing financial benefits and paying reasonable expenses for administering the public employee retirement system. Additionally, requires an investment fiduciary to take into account only financial factors when discharging fiduciary duties.

■Requires all shares held by or on behalf of a public employee retirement system, the participants, and their beneficiaries be voted solely in the financial interest of participants in the system and their beneficiaries.

■ Originally introduced in 2023 as “LB743: Adopting the Investment Neutrality in Public Funds Act” but failed to pass during that legislative session. Carried over to 2024 legislative session.

SUBSEQUENT DEVELOPMENTS

Tracks the Heritage Foundation's "State Pension Fiduciary Duty Act"