Ron DeSantis signs a law that makes it illegal in Florida for the state to invest based on ‘ESG’ strategies

Share
ESG investing
ESG: Environmental, Social and Governance investing. By Akash Sain via iStock for WMNF News.

Gov. Ron DeSantis on Tuesday signed a bill that will prevent government investment strategies that consider “environmental, social and governance” standards, which Republicans have deemed “woke.”

The bill (HB 3) has been a priority of House Speaker Paul Renner, R-Palm Coast.

It expands on actions taken earlier by DeSantis and members of the state Cabinet to require investment decisions in the Florida Retirement System Defined Benefit Plan to prioritize the highest returns without consideration of the standards known as “ESG.”

Critics contend the proposal will cost the state money and hinder investment decision-making.

The law, which will take effect July 1, doesn’t stop fund managers from investing in companies that use such standards.

But fund managers won’t be able to base investment decisions on issues such as climate change and social diversity.

Republicans across the country have criticized ESG as an “agenda-driven” effort against investments in fossil fuels, arms manufacturers and prisons.

Renner, who joined DeSantis at a bill-signing event Tuesday in Jacksonville, said the law stands up against “a far-left extreme agenda.” The bill also will prohibit financial institutions from doing such things as applying a “social credit score” when offering services. They won’t be able to deny or cancel services to people based on political opinions, affiliation or speech. In December, state Chief Financial Officer Jimmy Patronis announced that Florida would pull $2 billion from BlackRock, the largest asset-management firm in the world, because of ESG practices.

©2023 The News Service of Florida

You may also like

Political reporter William March
Billionaire donors pour money into DeSantis-led campaign targeting Andrew Warren

A dormant political action committee recently received $2.5 million from...

2024 election candidate signs
Election Day conversation with Hillsborough’s Supervisor of Elections

Election Day 2024 in Florida. Hillsborough SoE Craig Latimer plus...

Election Day 2024: Live updates & results

Live election coverage with local newscasts every 20 minutes, real-time...

The Scoop: Tuesday, Nov. 5, 2024, Tampa Bay and Florida headlines by WMNF

Stay informed about the latest election news with WMNF's scoop....

Ways to listen

WMNF is listener-supported. That means we don't advertise like a commercial station, and we're not part of a university.

Ways to support

WMNF volunteers have fun providing a variety of needed services to keep your community radio station alive and kickin'.

Follow us on Instagram

It's The Music Tuesday
Player position: