This week in responsible investing, the incoming Trump administration appears ready to attack companies that use ESG criteria when making investing decisions; Texas’ anti-ESG measures could be costing the state billions of dollars, including harming the state’s business-friendly brand. Read more below:
An op-ed in the Dallas Morning News detailed how Texas’ extreme anti-responsible investing policies are harming the state’s business-friendly reputation.
Sarah Stogner, an oil and gas attorney and district attorney for Loving, Reeves and Ward counties, writes, “For a state that touts being ‘good for business,’ Texas is sacrificing its reputation by using the heavy hand of government to force investment into oil wells owned by a group with lots of political influence: the owners of the least-producing, highest-polluting oil wells.”
ReformAustin affirmed that Texas’ fight against ESG may be costing the state “billions.”
From ReformAustin: “Policies that block responsible investing hurt the economy, and now we see they can’t be executed,” Kyle Herrig, spokesperson for Unlocking America’s Future, a left-leaning political group, told Bloomberg. “Texas wanted to pave the way for other states to attack ESG, but they’ve just shown the nation their plan is a failure and, in the process, damaged their reputation as a state that’s good for business.”
The incoming Trump administration seems poised to attack ESG efforts even though responsible investing thrived during his first term.
From Bloomberg: Investor Chat Reynders, co-founder of Reynders, McVeigh Capital Management, which oversees $4 billion, says he still sees a strong case for many of the companies that stand to benefit from a shift to a low-carbon economy. There was record global investment in the energy transition last year. “In reality, electrification isn’t going away,” Reynders says. “Nor is demand for water infrastructure, and grid technology has been advancing dramatically.”
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