Nineteen Republican governors, including Florida Gov. Ron DeSantis and South Dakota Gov. Kristi Noem, penned a letter calling out President Joe Biden’s commitment to environmental, social, and corporate governance (ESG), which they say poses a direct threat to the American economy, individual economic freedom, and the country’s way of life. The governors asserted that the proliferation of ESG has placed investment decisions into the hands of the “woke mob” and that financial institutions should return to profit-driven strategies.
The letter comes in response to a new rule proposed by the Department of Labor that would require fiduciaries—entities that manage assets or provide financial advice—to elevate the importance of “the economic effects of climate change and other ESG factors” when making investment decisions. Congressional Republicans attempted to block the change but Biden has said he would use veto power to uphold the new rule.
