What exactly is DeSantis doing? On Tuesday, DeSantis and other trustees of the State Board of Administration (SBA) passed a resolution that seeks to weaken the influence of the proponents of ESG in Florida. The resolution prohibits the consideration of ESG factors when investing in Florida state funds.
What is ESG? It’s a score that stakeholders and investment companies use to determine how businesses impact the planet and society based on standards that align with a progressive agenda. It influences public policy and often forces companies to meet these standards through diversity and inclusion training, diversity quotas, climate change initiatives, support for transgender youth, etc.
Zoom out: Due to the growing influence of the ESG, conservative leaders are increasingly utilizing political power to protect their states from it.
- West Virginia: In late July, West Virginia announced that companies influenced by ESG to boycott the fossil fuels industry would be barred from operating in their state.
- Texas: Yesterday, Texas conservatives banned BlackRock Inc., UBS Group AG, and eight other corporations from working with the state after investigating their ESG standards. DeSantis and other conservative leaders are signaling that this will be a larger, nationwide crusade against ESG.