DeSantis, 18 states to push back against Biden ESG agenda

Florida Gov. Ron DeSantis (R) on Thursday announced an alliance with 18 other states to push back against President Biden’s support for environmental, social and corporate governance investing, known as ESG.

The states argue that Biden’s backing for socially-conscious ESG investing, under which investors weigh sustainability and ethical considerations, is a threat to the U.S. economy. 

DeSantis joins with the governors of Alabama, Alaska, Arkansas, Georgia, Idaho, Iowa, Mississippi, Missouri, Montana, Nebraska, New Hampshire, North Dakota, Oklahoma, South Dakota, Tennessee, Utah, West Virginia and Wyoming in what his office called “an alliance to push back” against Biden’s ESG “agenda.”

“The proliferation of ESG throughout America is a direct threat to the American economy, individual economic freedom, and our way of life, putting investment decisions in the hands of the woke mob to bypass the ballot box and inject political ideology into investment decisions, corporate governance, and the everyday economy,” the states wrote in a joint statement.

Republicans have championed legislation that would nullify the administration’s existing ESG rule allowing managers of retirement funds to consider ESG factors. The bill has been sent to the president’s desk, but Biden is expected to veto it.

The 19 states in their joint statement said they plan to lead state-level initiatives “to protect individuals from the ESG movement,” including potentially blocking ESG at the state and local levels and withholding state pension funds and state-controlled investments from firms that use ESG.

“We as freedom loving states can work together and leverage our state pension funds to force change in how major asset managers invest the money of hardworking Americans, ensuring corporations are focused on maximizing shareholder value, rather than the proliferation of woke ideology,” the states wrote.

“We will not stand idly by as the stability of our country’s economy is threatened by woke executives who put their political agenda ahead of their clients’ finances,” DeSantis said.