Florida - Tuesday January 17, 2023: Governor DeSantis and the Trustees of the State Board of Administration (SBA) have formally approved measures to restrict further state investments in companies that have adopted what they deem are "woke environmental, social, and corporate governance," known as ESG.
“Corporations across America continue to inject an ideological agenda through our economy rather than through the ballot box,” said Governor DeSantis. “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.”
According to a news release from the Governor's office, Tuesday's formal approval of the restrictions updates the Florida Retirement System Pension Plan policies and the SBA corporate governance proxy voting guidelines "by ensuring that ESG is prohibited from consideration," in all state investment decisions.
It builds on actions taken last year which identified the factors state fiduciaries must consider before making investment decisions. Formal approval Tuesday ensures that "all investment decisions focus solely on maximizing the highest rate of return," states the release.
In addition to today’s actions, Governor 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:
• 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.
The proliferation of ESG throughout America is a direct threat to the American economy, individual economic freedom, and our way of life. 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. For more information on ESG and Florida’s efforts to put people before corporate power, click here.