Breaking News: Texas Sued Over Controversial Law Targeting Businesses Supporting Environmentally-Friendly Policies
A nonprofit organization, the American Sustainable Business Council, has filed a lawsuit against Texas to challenge a state law that restricts businesses advocating for reduced reliance on fossil fuels. The law, known as Senate Bill 13, prohibits Texas from investing in or working with companies that “boycott” the oil and gas industry, which the council argues violates free speech rights.
As the largest Republican-led state and a major oil producer, Texas has been at the forefront of cracking down on businesses with environmental, social, and governance (ESG) policies that it disagrees with. State officials, including Attorney General Ken Paxton and Comptroller Glenn Hegar, who support the law, have faced legal action for their stance.
Comptroller Hegar maintains a list of financial companies and investment funds that he believes target fossil fuel-based energy through their ESG policies. Recent additions to the list include British bank NatWest and asset management firm BlackRock, leading to significant financial repercussions for these companies.
The American Sustainable Business Council represents over 200,000 businesses, some of which have been directly impacted by Senate Bill 13. The council argues that the law discriminates against companies based on their views on fossil fuels, violating their First Amendment rights.
The lawsuit, filed in Austin federal court, challenges the constitutionality of the law and its implications for businesses in Texas. The case, American Sustainable Business Council v. Hegar et al, highlights the ongoing debate over ESG policies and government intervention in business practices.