How Trump allies and wealthy donors helped to fuel the GOP fight against ESG investing platforms

A radical of Republican authorities fiscal officers gathered past February astatine a Hyatt edifice successful downtown New Orleans to instrumentality purpose astatine 1 of the party's firm enemies: BlackRock CEO Larry Fink.

One sheet hosted by Republican Utah Treasurer Marlo Oaks posed a question progressively uttered by legislature Republicans and and prospective GOP statesmanlike candidates successful caller months, according to an docket obtained by the Center for Media and Democracy and aboriginal reviewed by CNBC.

The panel's statement asked: "Who's much important: shareholders oregon stakeholders? Is the 'stakeholder capitalism' being sold by Larry Fink and different investors truly stakeholder politics?"

The league was organized by the blimpish leaning State Financial Officers Foundation, a taxation exempt 501(c)(3) nonprofit radical that does not publically disclose its donors. The radical is astatine the halfway of a increasing web of organizations aligned with pockets of the Republican Party that person grown much comfy criticizing investing firms specified arsenic BlackRock, Vanguard and State Street for what critics telephone politically motivated investing plans.

A twelvemonth aft the sheet successful New Orleans, incoming House GOP committee chairs and GOP White House hopefuls specified arsenic erstwhile President Donald Trump and Florida Gov. Ron DeSantis person enactment Wall Street's environmental, societal and governance investing policies adjacent the apical of their governmental deed lists. The Senate is set to ballot Wednesday connected a measurement to artifact the Biden medication from allowing status plans to see ESG factors successful their investments.

More than a fractional twelve blimpish groups person helped to thrust the disapproval of Wall Street's ESG investing methods — and immoderate person little-known ties to longtime blimpish donors oregon lawyers who person aided Trump himself.

Members of the State Financial Officers Foundations are each almighty authorities Republican officials, many of whom have scrutinized ESG practices oregon pulled backmost billions of dollars from investing firms. They see Oaks, who past twelvemonth announced helium would move $100 cardinal successful authorities funds from BlackRock to different wealth managers, and Florida's GOP Chief Financial Officer Jimmy Patronis, who successful December said the authorities treasury would propulsion retired $2 cardinal successful assets antecedently managed by BlackRock.

A typical for the State Financial Officers Foundation did not instrumentality a petition for comment.

Behind the scenes, a larger web of blimpish involvement groups is helping to money the organization's events oregon nonstop representatives to attend.

Conservative leaning groups including the 1792 Exchange, the Heritage Foundation, Consumers' Research, American Legislative Exchange Council and Mercatus Center, were among the attendees of the backstage February gathering of the State Financial Officers Foundation successful New Orleans, according to the attendee database reviewed by CNBC.

Some of those organizations participated successful a akin State Financial Officers Foundation gathering successful Washington D.C. in November 2022, according to an agenda. The gathering successful D.C. focused, successful part, connected pushing backmost connected ESG concern standards. The instauration announced astatine the clip a targeted ESG run that features a website and an archetypal six-figure integer selling effort.

One of the organizations that attended past February is the 1792 Exchange, a nonprofit sponsor of the State Financial Officers Foundation. The group, which has go a cardinal subordinate successful the anti-ESG movement, has ties to cardinal Trump allies.

The 1792 Exchange says it intends to "develop argumentation and resources to support and equip non-profits, tiny businesses and philanthropy from 'woke' corporations to amended Congress and stakeholder organizations astir the dangers of ESG (environmental, social, and governance) policies." Critics person deployed the vague word "woke capitalism" successful effect to a wide scope of stances taken by corporations that they spot arsenic excessively beholden to wide politics.

The enactment precocious published an online scale that grades implicit 1,000 companies connected "policies, practices, and different applicable criteria to find the likelihood a institution volition cancel a declaration oregon client, oregon boycott, divest, oregon contradict services based connected views oregon beliefs." The companies that the radical has fixed a captious "high risk" people see BlackRock, Vanguard and State Street.

The 1792 Exchange does not study connected its website who its founders are, and the group's president, Paul Fitzpatrick, would not uncover the individuality of those who formed the organization.

Nathan Estruth, a erstwhile vice president astatine Procter & Gamble, said this twelvemonth that helium was a co-founder of the 1792 Exchange. Estruth was among the group's representatives astatine the State Financial Officers Foundation's February 2022 nationalist gathering successful New Orleans.

Estruth has played a varied relation successful GOP authorities successful caller years. He ran a failed bid to go lieutenant politician of Ohio successful 2018. He has besides fixed wealth to blimpish groups, including a $10,000 donation past twelvemonth to the Women Speak Out PAC, a ace PAC and spouse of the anti-abortion radical Susan B. Anthony Pro-Life America.

Records amusement the 1792 Exchange besides has aboriginal ties to Cleta Mitchell, an lawyer who worked with Trump arsenic helium tried to overturn the 2020 statesmanlike election, and Ken Blackwell, a Republican erstwhile Ohio caput of state. Fitzpatrick told CNBC that neither Mitchell nor Blackwell person a existent relation with the 1792 Exchange.

In 2021, Mitchell was listed arsenic caput and Blackwell arsenic manager of Constitutional Congress Inc., the sanction by which the 1792 Exchange was antecedently known, according to fiscal forms filed to the Internal Revenue Service and obtained by CNBC. The archetypal group, which said it focused connected educating the nationalist and lawmakers astir the Constitution, changed its sanction to the 1792 Exchange past twelvemonth and shifted its absorption to warring firm policies, according to Delaware authorities concern records.

"Constitutional Congress was formed to amended officials and citizens connected assorted issues, and the 1792 Exchange carries connected that ngo but it is giving attraction to retiree and besides shareholder issues," Fitzpatrick told CNBC.

Fitzpatrick, who provided CNBC with the group's 2021 forms filed with the IRS, did not connection its 2022 documents due to the fact that they person not been filed yet.

Both Mitchell and Blackwell person ties to Trump's efforts to dispersed conspiracies astir the 2020 election. Mitchell worked connected the erstwhile president's strategy to overturn 2020 authorities predetermination results.

Meanwhile, Blackwell is the seat of the Trump-aligned America First Policy Institute's Center for Election Integrity, which was created aft Trump's failed effort to get reelected successful 2020. It has challenged the integrity of the U.S. predetermination system. He was besides portion of Trump's arguable Presidential Advisory Commission connected Election Integrity, which the erstwhile president created soon aft the 2016 election.

Mitchell declined to reply questions to CNBC erstwhile asked astir her relation with Constitutional Congress, and alternatively ripped this reporter, falsely claiming successful an email that helium has "never done a azygous communicative that isn't a deed portion against conservatives."

Blackwell did not instrumentality requests for comment.

A increasing database of Republican donors, including different Trump allies, on with a monolithic donor advisory money person helped to supply backing for the anti-ESG fight.

The State Financial Officers Foundation itself raised $911,000 successful 2021, according to its latest nationalist 990 forms filed with the IRS. An archived webpage from September 2022 shows Consumers' Research was a "diamond sponsor" of the group.

It counts the 1792 Exchange arsenic a "gold sponsor," which springiness $50,000 and person benefits similar entree to exclusive events and a file successful an e-newsletter, according to Responsible Investor. The Heritage Foundation, meanwhile, is simply a "silver sponsor."

Other antecedently listed sponsors of the State Financial Officers Foundation see Mastercard, H&R Block, Visa, Fidelity and JPMorgan Chase. Mastercard, Fidelity, Visa and JPMorgan Chase each beforehand their ain sustainability concern models. None of these companies returned a petition for comment.

Tax-exempt 501(c)(3) groups specified arsenic Consumers' Research and the 1792 Exchange are not required to merchandise their donors. However, documents and quality reports connection immoderate clues into who has contributed to those organizations.

Along with sponsoring the fiscal officers group, Consumers' Research has besides spearheaded attacks against ESG and run multimillion-dollar advertisement campaigns against BlackRock, including by highlighting the firm's concern dealings with China.

Consumers' Research received a multimillion-dollar investment from a nonprofit called Marble Freedom Trust, according to the Wall Street Journal. The radical aims to concern the combat against firm ESG activities, according to the Journal.

Marble Freedom Trust is led by erstwhile Trump judicial advisor Leonard Leo, who helped to coordinate campaigns to corroborate the erstwhile president's Supreme Court nominees. The group received a $1.6 cardinal donation successful 2021 from Barre Seid, an electronics manufacturing mogul, according to The New York Times.

Meanwhile, Constitutional Congress, the precursor to the 1792 Exchange, raised $225,000 successful 2021 from anonymous donors. At slightest 1 erstwhile donor to the radical could connection a hint into who is backing the enactment arsenic it becomes a cardinal subordinate successful the anti-ESG movement.

The National Christian Charitable Foundation, which acts arsenic a donor advisory fund, says connected a 990 signifier that it funneled $6,000 to Constitutional Congress successful 2017. A hunt done ProPublica's nonprofit database shows lone the National Christian Charitable Foundation arsenic a donor to Constitutional Congress and does not database immoderate different contributors. The radical received different undisclosed donations, including successful 2021.

The instauration acts a donor advisory money for contributors who privation to usage it to concern different organizations but stay anonymous. The National Christian Charitable Foundation gives retired thousands of contributions annually: it raised much than $3 cardinal and donated $1.5 cardinal successful 2021, according to a 990 signifier posted connected its website.

When asked astir the publication to Constitutional Congress, a spokesperson for the advisory fund, Steve Chapman said the radical often does not cognize the intent of donors.

"Unfortunately we don't cognize the circumstantial intent of astir each assistance that NCF distributes, and we don't successful this case," helium said.