‘Will Not Be Tolerated Here In Florida’: DeSantis Purges ESG From State Retirement System

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 claim that the ESG philosophy confuses profit maximization and political and social agendas, such as reducing carbon emissions or encouraging racial equality.

“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” Added that the State Board of Administration “may not sacrifice investment return or take on additional investment risk to promote any non-pecuniary factors.”

DeSantis proposed legislation for 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 takes action one month after Florida Treasury divested BlackRock, an asset management company, has donated $2 billion to the ESG movement. Jimmy Patronis, Florida’s chief financial officer, told Larry Fink at BlackRock that the state has a lot of needs. “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 noted that such activism could result in the death of their countrymen. raise Prices for energy in the United States

Treasurers of Republican states divested BlackRock received $12 billion last year. Fink stated at the World Economic Forum, that there has been a shift in attitude toward ESG movements. “personal” These are the opponents of the philosophy. “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.”