DeSantis removes 'woke' ESG requirements for state investments
Florida's governor and the State Board of Administration asked fund managers to only focus on "maximizing the highest rate of return" regarding public assets.
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:
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:
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."