Gov. Ron DeSantis on Tuesday bans “woke” investment policies that he claims are efforts of “elites” to impose social agendas rather than ensuring maximum returns on pensions and other financial products. signed the bill.
The Governor, accompanied by Chief Financial Officer Jimmy Patronis and Speaker of the House Paul Renner, visited the Jacksonville Port Authority Cruise Terminal and signed House Bill 3, the Government and Business Operations Act.
“ESG is now officially DOA in the state of Florida,” DeSantis said.
“Woke” is an abbreviation for progressive things in the Republican Party.
The bill targets so-called ESG investing, which means applying environmental, social and governmental standards to investments. In other words, consider how investments protect the environment, increase social cohesion, and prevent cronyism and corruption within companies.
But for DeSantis and his allies in Congress, this process is a way for the left to advance policies that can never win at the ballot box.
“ESG is basically just window dressing for these people to do whatever they want. And if you go to a place like Davos, you know, everyone gets together and says, “We have to do all this.” and then try to impose that agenda,” the governor said.
Swiss Davis brings together business, political, and cultural leaders to promote “stakeholder capitalism,” defined as considering all stakeholders in economic issues, including investors, employees, and society at large. It is the venue for the annual World Economic Forum.
Mr. DeSantis believes that is undemocratic.
“So this is really an elite-driven phenomenon. ESG is just a kind of window dressing for it, but at the end of the day, they’re trying to exercise power over our society. They’re trying to change society. They’re trying to change policy on things they don’t like,” he said in Jacksonville.
In short, the bill prohibits state and local governments from entrusting or depositing pension funds with financial institutions that discriminate against customers based on “political opinion, speech, or affiliation,” or religious beliefs. .
Prohibits the use of politically-based “social credit scores.” Religion, gun ownership, or participation in a gun business. Participation in fossil fuel industries, timber, mining, and agriculture. or against illegal immigration, drug, and human trafficking.
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The law does little to deter investors because these considerations can be important factors in whether an investment is sound, one investment expert said in an interview with The Phoenix in August. predicted.
“With this ESG integration issue, that horse is out of the barn and in a neighboring county, but the barn burned down and a new barn was built. That was many years ago. This is just about getting the best data to make the best decisions. That’s it,” said Matt Orser of CFA Institute, which trains financial advisors.
The Sunrise Project concluded in January that banning ESG could result in up to $708 million in total additional investment costs for states pursuing these policies, including Florida’s It also includes an increase of $361 million from $97 million. These numbers represent an extrapolation from the Wharton Business School’s analysis of anti-ESG laws in Texas.
On January 17, the State Board of Supervisors, comprised of the Republican governor, Attorney General Ashley Moody, and Patronis, voted to strip more than $200 billion in state and local government pension investments from managers that consider ESG criteria. . In addition, Patronis transferred $2 billion from BlackRock, a major investment fund.