Attorney General Miyares issues AG opinion prohibiting ESG influences on VRS investment decisions
RICHMOND, Va. — Attorney General Jason Miyares has issued an official Attorney General’s Opinion, at the request of Delegate Nick Freitas, on the permissibility of basing Virginia Retirement System (VRS) investment decisions on environmental, social, and governance (ESG) criteria. The Opinion confirms that the VRS Board of Trustees must prioritize financial returns and the best interests of beneficiaries above ESG policies when making investment decisions.
The Virginia Constitution provides for a state-maintained retirement system for government employees, with funds designated as independent trust funds for the sole benefit of members and beneficiaries. The VRS Board of Trustees has the authority to invest VRS funds. That investment authority is subject to fiduciary obligations, and Virginia law requires investment decisions to be based on financial outcomes, not ESG policy considerations.
Official AG Opinions represent the Attorney General’s analysis of current law based on the Office’s thorough research of existing statutes, the Virginia and United States constitutions, and relevant court decisions.
Read the AG Opinion here.