WSJ: Florida’s New Law Helps Investors Consider Real ESG
July 12, 2023 Florida’s new law aims to limit government and corporate engagement in the Environmental, Social, and Governance (ESG) movement, focusing investment decisions on ESG issues that materially affect investment risks and returns, while avoiding social, political, or ideological considerations. The author supports this approach, arguing that while ESG factors can impact a company’s financial performance, the movement has been clouded by ideological actions like fossil-fuel divestment, detracting from its financial relevance. The critique acknowledges the politicization of ESG from both sides, suggesting that the law, despite its partisan presentation, represents a step towards prioritizing financially material ESG issues in investment decisions, striving for a more objective and financially focused application of ESG principles.