Florida Governor Ron DeSantis announced the decision to eliminate "woke" ESG (Environmental, Social and Governance) requirements for state investments with the goal of "maximizing the highest rate of return."
ESG requirements are the environmental, social and corporate factors that are taken into account when making an investment. In a statement the DeSantis administration noted:
The proliferation of ESG throughout America is a direct threat to the American economy ... Every day Floridians invest their hard-earned money with the desire to maximize profit and have a secure financial future. Unfortunately, woke corporate elites continue to institute ESG practices in an effort to promote a radical agenda at a cost to everyday consumers.
Maximizing the rate of return
The measure was drafted in conjunction with members of the State Board of Administration (SBA), those responsible for the investment of the state's public assets.
The board prohibited fund managers from taking ESG factors into account when investing the state's money. The measure's goal is that the focus of public investments is solely to maximize returns. According to the statement:
- "Permanently prohibiting State Board of Administration (SBA) fund managers from considering ESG factors when investing the state’s money."
- "Requiring SBA fund managers to only consider maximizing the return on investment on behalf of Florida’s retirees."
SBA CFO Jimmy Patronis noted:
We need asset managers to be laser focused on returns and nothing more. Florida’s not going to subsidize the actions of a bunch of Leftist ideologues who hate America; we’re not going to let a bunch of rich people in Manhattan or Europe try to circumvent our democracy.
Ending "discriminatory practices"
The governor also said that during the upcoming state legislative session, the use of "discriminatory ESG practices" will be stopped throughout the financial sector with new measures:
-"Prohibiting big banks, credit card companies, and money transmitters from discriminating against consumers for their religious, political, or social beliefs."
- "Barring financial institutions from considering so called 'ESG Credit Scores' in banking and lending practices to prevent Floridians from obtaining financial services like loans, lines of credit, and bank accounts."
