DeSantis threatens to use Florida's pension funds to undermine #ESG investing. Because Floridians seem to love financial chaos, like Rick Scott’s attempt to raise everyone’s taxes.
When you try to marginalize “ESG” you are in favor of autocracy in the model of a proto-fascist DeathSantis and that previous guy, because the current GOP fashion is to whip LIVs into attacking the FBI even to the point of violence, even with their LIVGolf clubs.
(CNN) As soon as next week, Florida pension fund managers could be barred from considering the social impact of their financial decisions as Gov. Ron DeSantis opens a new front in his anti-"woke" crusade, this time focused on Wall Street and corporate CEOs.
In
new draft rules posted Monday on the website of the agency that oversees Florida's pension fund, state investment managers can weigh only the risk or return of an investment when directing the state's $200 billion in assets. The directive is DeSantis' initial salvo against what he has called "ideological corporate power," and it follows efforts by other GOP state leaders that are targeting companies that venture into the political arena.
DeSantis has criticized financial institutions and corporate executives for considering factors like systemic racism and economic inequality when making business decisions, a practice known as environmental, social and governance, or ESG, investing. In an episode of Glenn Beck's online show posted Saturday on YouTube, DeSantis told the conservative commentator that he expected the new rules to "make a big splash" when they pass.
"We're a big pension system," DeSantis said, "and some of these businesses are going to have to choose between going down the ESG rabbit hole or being able to be invested with the state of Florida."
The rules are expected to be voted on next Tuesday when DeSantis, Attorney General Ashley Moody and Chief Financial Officer Jimmy Patronis meet as the State Board of Administration. Moody and Patronis are also Republicans and are closely aligned with DeSantis.
Darn that SSN, DoE, DoD… Darn that social responsibility, why not give up governance to a single strong party and leader like DJT, the very exemplar of neofeudal corporate governance like the Trump Organization, TRO (see Weisselberg).
Short for "environmental, social and governance," ESG represents a more stakeholder-centric approach to doing business. As ESG increasingly becomes top of mind for directors, it's essential to consider the global nuances that drive focus region by region.
Environmental, social, and governance (ESG) criteria are used to screen investments based on corporate policies and to encourage companies to act responsibly.
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The rapid growth of sustainable investing has precipitated the need for an appropriate regulatory framework by which the finance industry, and asset managers in particular, can continue to evolve.
A rarely-used financial product that makes it easier to monitor the performance of sustainable projects has been endorsed as a reliable way to avoid greenwashing in the $4 trillion ESG debt market.
The idea combines green debt, where proceeds are broadly used to fund environmental projects, with sustainability-linked bonds (SLBs), where the amount of interest an issuer pays depends on whether it meets specific sustainability goals. The Institute for Energy Economics and Financial Analysis, which advocates for a faster transition from fossil fuels, said on Thursday that a hybrid model -- so-called green SLBs -- can ease investors’ greenwashing concerns and become best practice for sustainable debt.
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The need for novel instruments comes amid a boom in green debt issuance and a regulatory crackdown on firms overstating their sustainability credentials. Some bond issuers now are pondering the merits of such borrowing and European lawmakers have been prompted to design a standard for green bonds, the largest segment of the market. At the same time, there are fears that the targets associated with sustainability-linked debt -- known as key performance indicators (KPIs) -- lack ambition, leading market stalwarts to question their integrity.
Swaying doubters
Combining the features of both instruments could sway doubters. Investors can be assured SLBs won’t directly finance controversial activities as the proceeds would be ring-fenced. And green bond issuers would be held accountable through forward-looking commitments, easing the concern that much of the market is refinancing past projects.
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Greenwashing is the process of conveying a false impression or providing misleading information about how a company's products are more environmentally sound. Greenwashing is considered an unsubstantiated claim to deceive consumers into believing that a company's products are environmentally friendly.
For example, companies involved in greenwashing behavior might make claims that their products are from
recycled materials or have energy-saving benefits. Although some of the environmental claims might be partly true, companies engaged in greenwashing typically exaggerate their claims or the benefits in an attempt to mislead consumers.
Greenwashing is a play on the term "whitewashing," which means using misleading information to gloss over bad behavior.
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