Creating Protecting Shareholders Act

SB 739, the "Protecting Shareholders Act," establishes that corporate directors and officers in West Virginia breach their fiduciary duty if they prioritize "environmental, social, and governance" (ESG) factors over shareholders' financial interests. The bill defines ESG to include diversity, equity, and inclusion (DEI) initiatives, and specifies that DEI efforts must not involve race-, ethnicity-, or national origin-based hiring, benefits, or programs unless required by law. It states that prioritizing ESG elements (like DEI or environmental goals) over financial returns to shareholders is "prima facie evidence" of a fiduciary breach. The law directly affects corporate leaders in West Virginia who manage publicly traded or private companies subject to fiduciary duties. The bill is currently pending in the Senate Banking and Insurance Committee.