On Monday, Florida Governor Ron DeSantis introduced a bill to shield residents from financial institutions that factor in Environmental, Social, and Governance (ESG) social credit scores to determine who should get a loan.
DeSantis says ESG has become a vehicle to infuse political views into investment choices, business governance, and the daily economy.
“That is not good for Florida,” DeSantis said.
By prohibiting such discrimination, the prohibition would ensure that big financial organizations like banks and credit unions would not target specific groups based on their political, religious, or social beliefs.
The governor said your pension and retirement money are probably invested in some of these sectors, and these investments should be made to attempt to provide the greatest return, utilizing all available investment possibilities.
Although traditional investing strategies prioritize shareholder value, ESG emphasizes social justice and green energy.
In other words, ESG says they won’t invest in an unwoke entity, even if it would give a greater return, like oil or gas.
When discussing ESG in April, Elon Musk called it the “devil incarnate.”
“Socially responsible” investors monitor ESG criteria to evaluate businesses. Companies are scrutinized on environmental factors such as their energy waste, carbon footprint, and how they treat animals and the environment. ESG’s social criterion includes checking whether the firm promotes diversity and favors LGBTQ rights. Corporate transparency and diversified board membership are two examples of governance standards.
DeSantis said that this was an attempt to inject politics into what should be purely economic matters.
On Monday, Desantis announced with the leaders of the Florida Senate, President Kathleen Passidomo, and the Florida House of Representatives, Speaker Paul Renner, that they were going to block “Social Credit Scores.”
According to the press release, the bill would forbid banks, trusts, and other financial entities from bias toward customers for their social or spiritual beliefs—including their support for a secure southern border, 2a,or stance on abortion—in banking and lending practices that aim to prevent Floridians from obtaining help with savings and loans.
