Florida CFO bars state pension fund from investing in ESG
Jimmy Patronis, Florida CFO, has issued a directive barring asset managers within Florida’s deferred compensation program from investing participants’ capital in financial products associated with ESG.
The Florida deferred compensation plan is the supplemental retirement plan for employees of the State of Florida. More than 93,000 State of Florida employees are enrolled in deferred compensation with total assets equaling $5.1 billion. The plan invests in institutional real estate, among other asset classes.
“The State of Florida has taken a hard stand that ESG is undemocratic; it constrains companies’ ability to pursue the best returns possible, and many of its values run counter to the values of everyday Floridians,” said Patronis. “As ESG has gone unchecked throughout the financial services sector for too many years, fiduciaries who believe ESG is bad for returns need to take steps in redirecting dollars away from these funds and into ones that are more f