Florida’s State Board of Administration trustees, led by Governor Ron DeSantis, voted Tuesday to ban environmental, social and governance considerations from the asset allocator’s investment decisions.
DeSantis and the SBA’s two other trustees passed the prohibition, which they insisted will prevent what he called “a handful of people” from imposing their political will on investing and thus harming Florida state and local government retirees.
At a meeting of the governor’s cabinet, they knocked a growing trend in the investment community to consider racial awareness and climate change in making investment choices.
To DeSantis, an outspoken conservative and possible 2024 presidential contender, ESG investing is an attempt “to harness economic power to try to advance an ideological agenda that doesn’t have enough appeal to win at the ballot box.”
“I want to have the values not of Davos imposed on us, but of places like Destin and Dunedin, where I grew up,” the Republican governor added. He has also proposed that the GOP-controlled state legislature pass a law forbidding ESG investing.
Part of a movement among red state governments, the Florida action prevents the SBA from investing for any reason not related to seeking the best financial return. The measure also blocks the organization from casting votes on “non-pecuniary” corporate proxy items.
Several state pension plans, notably the New York Common Retirement Fund,…
