DeSantis declares win in an effort against ESG (2022)
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The Florida State Board of Administration agreed to changes Governor Ron DeSantis (R) had requested concerning ESG investing. Although the decision was not unexpected, it gave the Governor an opportunity to declare a win over ESG:[1]
"Gov. Ron DeSantis of Florida yesterday advanced his campaign against environmental, social and governance investing. The State Board of Administration, on which he sits, adopted his proposal to ban the consideration of 'social, political or ideological interests' when making investment decisions for the state’s pension fund.
"'Corporate power has increasingly been utilized to impose an ideological agenda on the American people through the perversion of financial investment priorities under the euphemistic banners of environmental, social and corporate governance and diversity, inclusion and equity,' DeSantis, a Republican, said in a statement.
"The resolution imposes broad limits on the pension fund’s investments. State administrators will be instructed to prioritize 'the highest return on investment for beneficiaries, without consideration for nonpecuniary beliefs or political factors.' …
"Red and blue states are increasingly split: In the past year, more than a dozen have introduced new initiatives, either to divest state pension funds from gun and ammunition companies, or oil and gas companies and coal companies — or, conversely, to divest from ones that boycott fossil fuel companies.
"Asset managers may not be as divided as states, according to Joshua Lichtenstein, a partner at the law firm Ropes & Gray who has been tracking the battle. 'Florida and Texas have a lot of money, but it’s not clear we’ll see enough money line up for the red states to change things,' he said, noting that the European Union has already adopted E.S.G. investment principles. When it comes to pensions, managers play a long game, and ignoring E.S.G. could be risky."
See also
- Environmental, social, and corporate governance (ESG)
- Economy and Society: Ballotpedia's ESG newsletter
External links
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