19 states, led by Florida’s Republican Governor Ron DeSantis, signed an open letter declaring their opposition to the use of environmental, social, and governance factors (ESG) in government investing and outlined legislative priorities to that effect.
In addition to Florida, the coalition includes Alabama, Alaska, Arkansas, Georgia, Idaho, Iowa, Mississippi, Missouri, Montana, Nebraska, New Hampshire, North Dakota, Oklahoma, South Dakota, Tennessee, Utah, West Virginia, and Wyoming.
The joint statement read that “The proliferation of ESG throughout America is a direct threat to the American economy, individual economic freedom, and our way of life, putting investment decisions in the hands of the woke mob to bypass the ballot box and inject political ideology into investment decisions, corporate governance, and the everyday economy.”
The letter claims the Department of Labor’s recent final rule permitting the use of ESG factors when selecting retirement plan investments will cost Americans money by prioritizing a political agenda over maximum return.
With DeSantis running for President, this is just politics. I think in the end, most plan sponsors aren’t going to be using ESG funds and the coalition is just using this opposition for political gain against the Biden White House.