Florida Governor Ron DeSantis and the Trustees of the State Board of Administration (SBA) have taken measures to protect the state’s investments from environmental, social and corporate governance (ESG) considerations, according to a press release from the governor’s office.
These measures, which were formally approved on Tuesday, aim to ensure that all investment decisions focus solely on maximizing the highest rate of return instead of any “ideological agenda.”
The updates to the Florida Retirement System Pension Plan policy and SBA corporate governance proxy voting guidelines build on actions taken last year to clearly define the factors that fiduciaries are to consider in investment decisions, the release explains.
They ensure that ESG is prohibited from consideration.
In a statement, Governor DeSantis said, “Corporations across America continue to inject an ideological agenda through our economy rather than through the ballot box. 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.”
Chief Financial Officer Jimmy Patronis also commented: “Thanks to the leadership of Governor DeSantis, the Florida Cabinet reaffirmed today that we don’t want a single penny of our dollars going to woke funds. 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.”
Attorney General Ashley Moody said: “As a fiduciary of the State of Florida, 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. 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.”
In addition to these actions, the release notes that DeSantis has “proposed legislation during the upcoming legislative session to codify the actions taken today and rein in the use of discriminatory ESG practices throughout the financial sector by” accomplishing the following:
- “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.”
- “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.”
