DeSantis Calls For New Laws Barring ESG in Florida Banking

Under new laws Florida Gov. Ron DeSantis is proposing, big banks and investment companies would be prohibited from using ESG-influenced investment decisions in handling state pension money or banking state funds, or in discriminating against customers based on their political, social or religious beliefs. Photo composite image from Reuters.

Gov. Ron DeSantis has proposed new laws restricting financial institutions from using environmental, social, and governance (ESG) principles to guide investment decisions.

In a press conference held at Florida SouthWestern State College in Naples, Florida, on Feb. 13, DeSantis said he was partly acting to protect Florida public employees’ pensions, as ESG-driven investing may not be in the beneficiaries’ best financial interests. The state will require financial institutions to uphold their responsibilities, he said.