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ESG, or environmental, social and corporate governance took a substantial blow on Thursday.
Woke corporations have overwhelmingly moved into promoting and encouraging ESG-related policies in recent years.
This trend has been spurred on by investment firms like BlackRock, which have prioritized investing in “social justice” minded companies.
Essentially, instead of prioritizing return on investment, investor profits or financial concerns, banks and equity firms are choosing progressive political ideology instead.
Of course, nonsensical ESG strategies have received support from President Biden.
But the ridiculous trend may soon be coming to an end, thanks to Governor Ron DeSantis.
DeSantis announced that 18 states signed on to an alliance to combat the “pernicious effects” of ESG policies. Alabama, Alaska, Arkansas, Georgia, Idaho, Iowa, Mississippi, Missouri, Montana, Nebraska, New Hampshire, North Dakota, Oklahoma, South Dakota, Tennessee, Utah, West Virginia, and Wyoming are joining the Sunshine State.
In a statement, DeSantis reiterated his efforts to ensuring that banks are held accountable for prioritizing politics over financial stability.
“At my direction, Florida has led the way in combatting the pernicious effects of the ESG regime by directing our state pension fund managers to reject ESG and instead focus on obtaining the highest return on investment for Florida’s taxpayers and retirees,” he said. “At the time I said we would spearhead an initiative to join with other like-minded states to send an even louder message to the financial industry that the American people have rejected ESG at the ballot box, and ideologues cannot and should not circumnavigate the will of the people. Today, we have delivered on that promise.”
DeSantis Spearheads Efforts to Stop ESG-Obsessed Woke Banks
He also perfectly summarized how misplaced corporate priorities have put economic stability at risk.
“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 explained.
Naturally, recently collapsed Silicon Valley Bank repeatedly celebrated their commitment to ESG and “social justice” policies.
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According to the Daily Mail, SVB CEO Greg Becker in 2020 said the company would match employee donations to “pandemic-response, social justice, sustainability and supporting women, black and Latinx emerging talent and other underrepresented groups.”
Similarly, Signature Bank, another failed institution, announced in 2021 that their political viewpoints were an “increased focus” for the bank.
“With our increased focus on social impact, including practices related to human capital, diversity, equity and inclusion, along with strategies to support and cultivate community engagement, and our approach to sustainability efforts as individuals and as an institution, the Bank continues to strengthen its governance in these areas.”
SVB also proudly posted on their website their work on climate change and environmentally focused companies.
“We serve those creating positive environmental change,” the website explains, while saying the bank worked with around 1,550 companies in the “climate technology and sustainability sector.”
Apparently just, you know, being a bank is not possible for these companies.
Obsessive Political Focus Hurting Companies
It gets even worse.
Credit Suisse, a massive Swiss bank, had recently been on the verge of collapsing before being handed a $54 billion lifeline.
An influential executive at the bank is someone named Pips Bunce, who spends most of their time discussing political issues.
Naturally, Credit Suisse also has an entire article on their website discussing their commitment to ESG investing.
They proudly explain that starting in September 2019, they became even more devoted to woke investing.
“In September 2019, we announced our plan to increasingly incorporate environmental, social, and governance considerations – the ESG factors – into the investment process of several of our strategies,” the site reads.
Relatedly, their stock price is down 84% since.
That’s why the DeSantis announcement is so important. Corporations for far too long have been allowed to get away with openly prioritizing progressive politics over their fiduciary duty.
Now, with 18 other states involved, Florida can lead the way in combating such nonsensical strategies.
Corporations and the Biden administration overwhelmingly believe it’s more important to virtue signal than to do the best possible job.
Thankfully, DeSantis and these allied states are drawing a line in the sand to end such absurdities.
The only bad news is that 31 states still haven’t joined.