Connect with us

Hi, what are you looking for?

Florida News

Jimmy Patronis to Norway: Divesting from Israel Due Over ESG Would Be a Mistake

File photo

Last week, Florida Chief Financial Officer (CFO) Jimmy Patronis issued a letter to the Norwegian Consulate General following reports that Norway’s Sovereign Wealth Fund is reviewing recommendations to add Israel to Norway’s excluded funds list.

The letter is below.

Dear Norway Consul-General Heidi Olufsen,

As Florida’s Chief Financial Officer, I’m writing today to express serious concerns regarding reports that Norway’s Sovereign Wealth Fund is reviewing recommendations by your nation’s ethics committee to add Israel to its excluded funds list based on a faulty report from the United Nation’s (U.N.) Commission on Human Rights. My concerns underscore an alarming situation where a Western European nation may divest from the world’s greatest, most prosperous democracy in the Middle East, while maintaining significant investments in China in the name of Environmental, Social and Governance (ESG) scoring.

I want to bring to your attention that the information in these faulty U.N. reports were used by ESG ratings firm Sustainalytics which Moringstar later dropped because the ESG scale disproportionately targeted Israel while leaving the Chinese Communist Party (CCP) untouched, despite their horrific human rights violations. The U.N. is no friend of Israel, nor our country, and it has provided a platform to countless dictators who seek Israel’s demise.

Relying on bad metrics, and ESG, for divestment decisions could create immense problems for both of our nations. A divestment from Israeli banks, of this scale, may have devastating effects on the entire Israeli economy and stability within the Middle East. Following the failure of Silicon Valley Banks (SVB), markets are already sensitive to outflows within banking. Additionally, Israeli banks should not be singled out, as opposed to other international financial institutions.

No doubt, the Norwegian fund’s divestment from Israeli banks on the basis of ESG standards, rather than profits, is just the sort of boneheaded action that tempts the rule of unintended consequences, potentially causing a run on their banks.

The Norwegian Fund, which was created as a result of oil and gas investments, commands $1.3 trillion in assets and an institution of this size could create a domino effect where other funds would divest from Israel – dealing a significant blow to the Jewish-state. Suffice it to say, a run on the banks in the Middle East would not be good for anyone.

Fortunately, the fund has not ruled on this issue yet, but time is of the essence.

As Consul General, I respectfully ask that you take this information back to your leadership and highlight the dreadful global implications this ESG mania could have on world markets.

If you need further information on this issue, please contact my office at 850-413-3100 or you can email at CFO.Patronis@myfloridacfo.com.

Author

  • Florida Daily offers news, insights and analysis as we cover the most important issues in the state, from education, to business and politics.

    View all posts

Archives

Related Stories

Florida News

Florida State Fire Marshal Jimmy Patronis is encouraging all Floridians to practice fire safety while cooking during the Thanksgiving Holiday. According to the National Fire...

Political News

Florida Chief Financial Officer Jimmy Patronis announced that he may run in the special election for Florida Congressional District 1. In a post on...

Economy News

Florida Chief Financial Officer (CFO) Jimmy Patronis and the Florida Department of Financial Services (DFS) launched the “My Safe Florida Condo” pilot program, a...

Political News

As Bitcoin regains momentum with investors, Florida’s Chief Financial Officer Jimmy Patronis is imploring state leaders to consider cryptocurrency as a potential component of Florida’s state retirement system.Last...

Crime News

Below is an official statement from the office of Florida CFO Jimmy Patronis: Florida Chief Financial Officer (CFO) Jimmy Patronis announced the arrest of...

Florida Hurricanes

TALLAHASSEE, Fla. – Today, Chief Financial Officer (CFO) Jimmy Patronis highlighted the U.S. Army Corps of Engineers activation of Operation Blue Roof for several counties in Florida...

Environment

Florida Chief Financial Officer (CFO) & State Fire Marshal Jimmy Patronis issued a warning to residents and first responders about an alarming fire hazard...

Florida News

State officials announced that more than $39 million in unclaimed property was returned to Floridians during the month of August.August 2024 Unclaimed Property Returns...