Florida’s DeSantis wants to restrict politically motivated investment policies

By Andrew Powell (The Center Square)

Florida Gov. Ron DeSantis wants the Legislature to block politically motivated banking and investment policies with taxpayer funds and protect Floridians from discrimination by the banking industry in the upcoming session.

DeSantis held a news conference in Naples on Monday to discuss legislative proposals to address environmental, social and governance investment policies. With ESG banned in investment decisions for the state’s pension program by the state Board of Administration last year, DeSantis wants more restrictions.

New bills are being introduced in the regular session that are intended to protect Floridians from discrimination by big banks and financial institutions for their political, religious or social beliefs, and fund managers who only invest taxpayer funds to maximize rates of return.

Under new bills being considered by the Legislature, banks in Florida are prohibited from using social credit scores when making banking and lending decisions. Financial deposits by state and local governments with organizations pursuing an ESG agenda will be prohibited.

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State and local governments are prohibited from considering, prioritizing or requesting information about ESG as part of the procurement and contracting process.

“We believe this is an elite-driven phenomenon, which ultimately will not be a good road for this country, and it will not be good for other industrialized countries.” DeSantis said.

According to DeSantis, ESG is a way to incorporate political theories into investment decisions, corporate governance and the everyday economy.

“That’s ultimately not something that works well for us in Florida or in the United States of America.” DeSantis said.

DeSantis noted that average citizens don’t want ESG, and ideas are coming from both the US and internationally. DeSantis noted that most of these theoretical governance programs come from places like the annual World Economic Forum meeting in Davos, Switzerland.

“One of their biggest goals is energy production, they don’t like us producing more oil and gas, they don’t want us to be energy independent.” DeSantis said it’s bad policy because it affects the amount Floridians have to pay for energy to work and live.

“It affects our national security, when you have to go to foreign countries that are hostile to us to try to gain power, that’s not a good place to be.” DeSantis said. “Why does this affect our national security? The most important thing facing our country is to capture all the supply chains and get them out of China.

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DeSantis pointed out that during the COVID-19 lockdowns, most consumer goods were produced in China and China is not an ally of the United States, and ESG gives China a competitive advantage.

Restrictions on personal investments are part of adopting ESG policies and people should be able to invest their money wherever they want, such as oil and gas companies, DeSantis said. DeSantis added that shareholder funds are being used to fund these theoretical policies.

“This is not an appropriate use of corporate power.” DeSantis said.

Banks are using mechanisms such as social credit scores for companies similar to those implemented under the Chinese Communist Party, DeSantis said.

“This is not something that is acceptable in the state of Florida.” DeSantis said those who don’t follow the same ideology as the “jet setters in Davos” are the ones being targeted the most.

“They’re not responsible to you, they’re not responsible to us, and ultimately I think this represents a threat to a smooth and prosperous economy, but also our freedom.” DeSantis said.

Syndicated with permission from The Center Square.