Biden vetoes anti-ESG bill as DeSantis forms 20-state alliance to battle the practice

TALLAHASSEE, Fla. (FLV) – Gov. Ron DeSantis said President Joe Biden’s recent veto on an anti-environmental, social, and corporate governance investing bill is a large part why he formed an alliance of 20 states battling the “woke” banking practice.

The practice, also known as ESG, uses factors like social justice and renewable energy in deciding on smart investments.

A bill passed by Congress was expected to be vetoed, but it would have overturned a Labor Department rule that promoted ESG investing.

“I just vetoed my first bill,” Biden said. “This bill would risk your retirement savings by making it illegal to consider risk factors MAGA House Republicans don’t like. Your plan manager should be able to protect your hard-earned savings — whether Rep. Marjorie Taylor Greene likes it or not.”

DeSantis responded, “Biden’s veto is why I formed an alliance of freedom-loving states to combat the threat posed by ESG.”

“Now with Virginia, our 20-state coalition will protect our citizens against powerful economic actors using their financial might to impose an ideological agenda,” he said.

The alliance was announced early last week.

In a joint statement, the involved states said that ESG “threatens the vitality of the American economy and Americans’ economic freedom.”

They said they plan to take actions like cracking down on state and local level investments that involve ESG, and eliminating ESG “factors” when issuing bonds.

The states also said “social credit scores” could be banned.

“This may also include stopping financial institutions from discriminating against customers for their religious, political, or social beliefs, such as owning a firearm, securing the border, or increasing our energy independence,” it said.

“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.

Chief Financial Officer Jimmy Patronis, who has worked with DeSantis on battling ESG, praised DeSantis for using the “full force of his administration” in fulfilling his promise.

“Like all viruses, ESG has spread into virtually every industry and every corporate boardroom. To fight, and win, we need a major coalition like this one,” he said.

DeSantis ramped up his battle on ESG last year. Earlier in 2023, he proposed the Florida Legislature enact new laws targeting the practice.

DeSantis said ESG has developed into a “mechanism to inject political ideology into investment decisions, corporate governance, and really just the the everyday economy.”

“That is not ultimately something that is going to work out well for us here in Florida,” he said.

DeSantis’ actions on ESG go back to 2021, with him initially directing the State Board of Administration to retake control of state pension fund’s “proxy voting” from fund managers pursuing “ideological outcomes.”