DeSantis Purges ESG From State Retirement System: “Will Not Be Tolerated Here In Florida”

Florida Republican Governor Ron DeSantis Tuesday’s approval of measures to stop the Florida Retirement System Pension Plan that invests in compliance with the corporate governance movement (also known as ESG.

According to DeSantis’ office, the approval of the resolution will ensure Public fiduciaries “invest state funds in a manner that prioritizes the highest return on investment for Florida’s taxpayers and retirees without considering the ideological agenda” The ESG movement. Critics argue that this philosophy confuses profit maximization, political and social agendas like reducing carbon emissions and promoting purported race equity.

“Corporations across America continue to inject an ideological agenda through our economy rather than through the ballot box,” DeSantis spoke in a press release. “Today’s actions reinforce that ESG considerations will not be tolerated here in Florida, and I look forward to extending these protections during this legislative session.”

The resolution Mandates that investment decisions be made “must be based only on pecuniary factors” These exclude the “consideration of the furtherance of social, political, or ideological interests” Adds the State Board of Administration “may not sacrifice investment return or take on additional investment risk to promote any non-pecuniary factors.”

DeSantis suggested measures to the new Florida Legislature to ban financial institutions “discriminating against consumers for their religious, political, or social beliefs,” ESG rankings should be prohibited from preventing residents access to financial services.

“I and my fellow trustees have an obligation to make responsible investment decisions on behalf of the beneficiaries we represent, not cater to woke corporate executives trying to force political ideology,” In a press release, Ashley Moody, Florida Attorney General, stated. “Through this action today, we will continue to fight back against ESG agendas that put partisan ideology ahead of financial returns for Florida’s retirees.”

DeSantis’ actions come one month after the Florida Treasury divested BlackRock, an asset management company, has donated $2 billion to the ESG movement. Jimmy Patronis, Florida’s Chief Financial Officer, informed Larry Fink of BlackRock that the state needed $2 billion. “partners within the financial services industry who are as committed to the bottom line as we are” Added that the state would also be “taking its business elsewhere.”

The divestment was among the largest such efforts from other state governments led by Republican officials, who have contended that prominent asset managers’ voting priorities, such as pressuring portfolio companies to transition away from fossil fuels, constitute the mismanagement of public assets. BlackRock has taken “voting action on climate issues” An investment stewardship report reveals that there are dozens of portfolio companies against which to choose reportSome officials were able to see that this activism could be a possibility. raise Prices for energy in the United States

Treasurers of Republican states divested BlackRock received over $12 billion in revenue last year. Fink spoke at the World Economic Forum about how skeptical people have become towards the ESG movement. “personal” These opponents are trying to “demonize the issues.” Elon Musk received the comments just days later quipped You can find out more about social media “the S in ESG stands for Satanic.”