Texas is embroiled in a legal battle with the American Sustainable Business Council (ASBC) challenging Senate Bill 13, a state law that would restrict investments and contracts with companies that support reducing reliance on fossil fuels. ASBC, a nonprofit that advocates for environmentally sustainable business practices, filed the lawsuit in federal court in Austin, arguing that the law violates free speech rights by punishing companies based on their environmental, social and governance (ESG) positions.
Senate Bill 13, passed in 2021, prohibits Texas from engaging with companies that “boycott” the oil and gas industry. Texas Comptroller Glenn Hegar, one of the defendants in the lawsuit, defended the law, saying it protects the state’s economic interests by ensuring taxpayer dollars are not invested in ways that go against Texas values. Hegar also maintains a list of companies, including NatWest and BlackRock, that he claims have ESG policies that unfairly target fossil fuels.
ASBC, which represents more than 200,000 businesses, argues that the law violates the First Amendment by discriminating against companies based on their views. The nonprofit claims that Senate Bill 13 has harmed its members, including Esso Capital and Our Sphere, by excluding them from competing for state investments and contracts.
This case could have significant implications for ESG policy and corporate freedom across the U.S. The outcome of American Sustainable Business Council v. Hegar et al. in the U.S. District Court for the Western District of Texas could impact how states regulate ESG considerations in business practices and investments.
For companies navigating the evolving landscape of ESG and sustainability strategies, Seneca ESG offers AI-driven solutions that help companies comply with regulatory requirements while maintaining environmental and social responsibility.
source:
https://esgnews.com/texas-faces-legal-challenge-over-anti-esg-law/
https://www.reuters.com/legal/texas-is-sued-over-anti-esg-law-2024-08-29/
https://www.eenews.net/articles/texas-anti-esg-law-faces-first-amendment-challenge/
https://www.pionline.com/esg/anti-esg-law-leads-lawsuit-against-texas-officials
https://www.bloomberg.com/news/articles/2024-08-29/texas-officials-sued-over-anti-esg-law-targeting-wall-street
