Texas was sued Thursday by a nonprofit whose members support environmentally friendly policies and which seeks to block a state law targeting businesses that support reducing dependence on fossil fuels.
The American Sustainable Business Council said a 2021 law known as Senate Bill 13 violates members' free speech rights by banning Texas from investing in or contracting with businesses that, from the state's perspective, “boycott” the oil and gas industry.
Texas is the largest and one of the most prominent Republican-led states cracking down on businesses Environmental, Social, and Governance (ESG) Policies It is also easily disliked. America's largest oil producing state,
State Attorney General Ken Paxton and Comptroller Glenn Hegar, both Republicans who support the 2021 law, were named as defendants in the suit filed in Austin, Texas federal court.
Representatives for their offices did not immediately respond to requests for comment.
With regard to the 2021 legislation, Hegar says that List They reviewed 16 financial companies and over 350 investment funds whose ESG policies they believed inappropriately targeted fossil fuel-based energy.
Hager added British bank NatWest to the list two weeks ago. In March, the Texas Permanent School Fund said it Loss of $ 8.5 billion 10 per cent of assets under management belong to BlackRock, which is also on the controller's list.
The American Sustainable Business Council said Senate Bill 13 harms its corporate and individual members, who represent more than 200,000 businesses, even as Texas portrays itself as a business-friendly state.
Two members, Etho Capital and Our Sphere, have funds on Hager’s list.
“This law violates the First Amendment by preventing companies from competing for state investments or contracting with the state whenever Texas believes those companies hold discriminatory views about fossil fuels,” the complaint states. “Because SB 13 codifies viewpoint-based discrimination, it is likely unconstitutional.”
The case is American Sustainable Business Council v. Hager et al, US District Court, Western District of Texas, No. 24-01010.
