Woke Inc. is under fire.
The largest asset management company in the world, BlackRock, became the new target of Ron DeSantis' most recent attack on "woke capitalism." Some might know "woke capitalism" simply as ESG or ethical investing.
DeSantis also attacked Disney earlier this year.
Ron DeSantis vs. Ethical Investing
Sometimes it seems like DeSantis is spending a lot of time and energy boosting his own image on the taxpayer's dime. Maybe it's something all politicians do.
However, Florida taxpayers will pay the price; once again.
DeSantis is coming after BlackRock's idea of mitigating climate risk and investing at least a portion of their $8 trillion assets under management in environmental, social, and corporate governance (ESG) type opportunities.
DeSantis claims this defies BlackRock’s fiduciary duty to prioritize returns for their shareholders above all else.
This month, Florida promised to withdraw up to $2 billion in long-term securities and short-term assets from BlackRock.
In order to prevent the state pension funds from taking ESG into account when investing workers' retirement resources, DeSantis has already spearheaded a resolution.
The action follows his criticism of other large corporations he believes to be overly progressive, such as Disney's position on LGBTQ issues – which cost the company its capacity to manage its own private government around its Orlando theme park.
This game plan emphasizes why DeSantis is getting the spotlight as the great new hope of the Republican right. He's fighting ethical inventing by all means.
Florida to follow other Republican states
However, Florida is just following other Republican states where about $1 billion has been withdrawn from BlackRock. The red states contend that ESG harms their economies and state pensions.
BlackRock is being targeted for prioritizing “activism” over fiduciary duty to their state pension funds.
Expensive political theatre
These moves are more or less political theatre.
BlackRock asserts that ignoring climate change risks will damage the economy long term.
DeSantis' issue with Blackrock may need to be settled in court. Until then, everyday pension holders will suffer in this fabricated war between political parties and corporate interests.
Do you want DeSantis to take on BlackRock?
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