The bill is one of the furthest-reaching efforts yet by U.S. Republicans against sustainable investing efforts, and a clear political message from DeSantis, a likely presidential candidate.

Republicans, including some from energy-producing states, say many executives and investors have lost their focus on returns as they take growing account of issues like climate change and workforce diversity.

"We want them to act as fiduciaries. We do not want them engaged on these ideological joyrides," said DeSantis just before he signed the bill at a webcast event.

Analysts said the legislation goes further than other state anti-ESG bills, even as business groups worry the efforts pose financial risks. Florida's law now creates some questions of how it will operate in practice, analysts said.

For instance, fund managers working for agencies like the state's big pension fund would have to include disclaimers in some communications with portfolio companies to make clear they do not reflect Floridians' views.