Miyares Issues Opinion Prohibiting Environmental, Social, and Political (ESG) Consideration In VA Investments

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.

“Virginia families have spent decades working hard to build their retirement accounts. Investments must be driven by careful, calculated financial foresight, not clouded by unfounded ESG fads. This Opinion firmly reinforces the Virginia Retirement System’s responsibility and legal obligation to make objective investment decisions free from the sway of social or political agendas. Secure futures require sound economics,” said Attorney General Miyares.

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 .

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