Monday, January 30, 2023

This is 1 thing I don't understand

 Again, as a rule I try not to talk about individual politicians or even the crazy ass crap that happens in Florida and Texas. But this is super-duper crazy.

Republican State Legislatures, often at the whim of a Politician with delusions of grandeur, have declared a new enemy. You know they hate gays, trans, climate realists, blacks, people who believe in science and anyone that looks to do the least bit of good towards any of these groups.

So their new enemy is companies that practice ESG policies - which are Environmental, Social and Governance. So not only do these Republicans not believe America should invest in its future, they don't want to invest in any companies that practice looking for the best for people. 

So, first of all, the entire ESG movement is more about optics that anything else. Blackrock is getting shit for being a company that looks at ESG when decided how to balance its investments. So so Florida is banning investing in them. But Blackrock also has investments in oil and gas. But the very idea that a company might LOOK at ESG factors is too much for Florida.

Second, it turns out, this may open up the Florida and Texas to legal action against general funds and retirement funds for the state. Say if any retiree getting funds from Florida can sue them if they are not fiduciaries* for the people and investing. Because - again, as it turns out, ESG investments have better rates of return than your basic dirty polluters that do not believe in climate change.

*A few years ago laws were passed that make fund investors "fiduciaries", that is they are chartered first and foremost with putting client needs ahead of any other reason for investing (example: a fiduciary cannot ban investing in ESG funds if they have greater returns).

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